[So Cal Rocket]

No, dalereed says that you are only liable for the 5% surcharge if you have underwithheld and have to write a check when you file your taxes:

Dalereed from Post 50: iF YOU HAVE PAID ENOUGH DURRING THE YEAR THAT YOU DON’T OWE ANYTHING WITH YOUR RETURN THERE IS NO 5% PENALTY.

The difference between what he is saying and I am saying is this... I am saying that anyone who pays California State Income Tax is getting hit with the 5%... He is saying that only those who still owe a balance when they file have to pay the 5%.

[ArmstedFragg]

You know, the confusion here is over the term “liability”, which makes it so difficult to find a short way of expressing the point you’re making. The only other thing I can come up with is “if the state doesn’t give you back everything that was withheld, you owe the penalty on everything they keep.” Probably not much better, but at least a different way of saying the same thing.

[Syncro]

So the California Income Tax has been raised 5% for everybody?

It's calculated in for this year, or is it retroactive to 2008?

If they owe us money for 2008, will they pay interest on the IOU?

Can we have our employers stop taking out CA state tax until the IOU is fulfilled?

[calcowgirl]

Does anyone have anything definitive on the subject that can be referenced, like a bill number?

I tend to go with SCR's definition, solely by looking at the numbers in the Assy Budget Report and by the name they apply ("surtax" vs. "penalty")

They expect to generate $3.3 Billion in revenues in the next fiscal year (where total personal income tax revenue is between $45-50 billion). Hence, it appears the 5% applies to the total tax liability, before consideration for withholding or other payments by the taxpayer.