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fishythepete t1_j7pmsko wrote

You are completely misinterpreting this. Yes, 6% of the sale is withheld. Just like federal taxes are withheld when you get a paycheck. When you file your taxes, if you do not owe capital gains or other taxes, it will be refunded.

It’s meant to keep retirees from cashing out and leaving the state, skipping out on capital gains tax.

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