No. It's a 5% surcharge on your TOTAL state income tax liability. Your liability is covered through withholding, quarterly estimated tax payments or a check you send in with your Form540 on April 15th.
Of course it’s on the total but if you don’t owe anything at the end of the year it doesn’t apply, only if you owe.
For Californians and those interested in what’s going on in Sacramento join the ‘Head On A Stick’ Tax Revolt here:
http://www.kfiam640.com/pages/johnandkenshow/
Listen, or stream the show, live coverage of the Budget mess monday through friday this coming week at 3pm pacific.
If it passes with the tax increases, the campaign will be continued!