California 2017-2018 Regular Session Status: In Committee

SB 352 — Income taxes: withholding: real property sales.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 313% of the sales price of the property when the property is acquired from either an individual, or a partnership or corporation without a permanent place of business, as specified. Existing law also allows, by election of the transferor, alternative withholding amounts that are not less than the amount of gain required to be recognized under income tax laws multiplied by the corporation tax rate, bank and financial corporate tax rate, the highest personal income tax rate, or the current "S" corporation tax rate plus the highest personal income tax rate, as applicable. Existing law imposes a penalty for a failure to withhold, as specified, and requires a real estate escrow person to provide written notification to the transferee, other than a transferee that is an intermediary or accommodator in a deferred exchange, of withholding requirements. This bill would eliminate these withholding provisions for the disposition of a California real property interest that occurs on or after January 1, 2018, and would instead require the transferee, including any intermediary or accomodator in a deferred exchange, of a California real property interest to withhold 3â…“% of the purchase price of the property if the property was either acquired from a person with a last known street address outside this state at the time of title transfer, or from a corporation if after the transfer that corporation has no permanent place of business in this state. The bill would also allow, by election of the transferor, alternative withholding amounts that are not less than the amount of gain required to be recognized under income tax laws multiplied by the corporation tax rate, bank and financial corporate tax rate, the highest personal income tax rate, or the current "S" corporation tax rate plus the highest personal income tax rate, as applicable. The bill would also require a real estate escrow person to provide the corresponding written notification to subject transferees.

Bill Text

Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. May 25 hearing: Held in committee and under submission.

  3. Set for hearing May 25.

  4. May 1 hearing: Placed on APPR. suspense file.

  5. Set for hearing May 1.

  6. Read second time and amended. Re-referred to Com. on APPR.

  7. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 623.) (April 5).

  8. Set for hearing April 5.

  9. Referred to Com. on GOV. & F.

  10. From printer. May be acted upon on or after March 17.

  11. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation housing
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Frequently asked questions

What does SB 352 do?
Existing law requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 313% of the sales price of the property when the property is acquired from either an individual, or a partnership or corporation without a permanent place of business, as specified. Existing law also allows, by election of the transferor, alternative withholding amounts that are not less than the amount of gain required to be recognized under income tax laws multiplied by the corporation tax rate, bank and financial corporate tax rate, the highest personal income tax rate, or the current "S" corporation tax rate plus the highest personal income tax rate, as applicable. Existing law imposes a penalty for a failure to withhold, as specified, and requires a real estate escrow person to provide written notification to the transferee, other than a transferee that is an intermediary or accommodator in a deferred exchange, of withholding requirements. This bill would eliminate these withholding provisions for the disposition of a California real property interest that occurs on or after January 1, 2018, and would instead require the transferee, including any intermediary or accomodator in a deferred exchange, of a California real property interest to withhold 3â…“% of the purchase price of the property if the property was either acquired from a person with a last known street address outside this state at the time of title transfer, or from a corporation if after the transfer that corporation has no permanent place of business in this state. The bill would also allow, by election of the transferor, alternative withholding amounts that are not less than the amount of gain required to be recognized under income tax laws multiplied by the corporation tax rate, bank and financial corporate tax rate, the highest personal income tax rate, or the current "S" corporation tax rate plus the highest personal income tax rate, as applicable. The bill would also require a real estate escrow person to provide the corresponding written notification to subject transferees.
Who sponsors SB 352?
SB 352 is sponsored by Mark Stone.
What is the current status of SB 352?
This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 352?
Track SB 352 free on One Click Politics — get push/email alerts when it moves.

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