What is 2% Withholding in real estate transactions?

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Henry Barr explains 2% Withholding
Some people are asking about what a 2% withholding tax is…it’s really not a tax it’s just a 2% withholding of the full sales price for the title companies to keep so they can submit to the State Treasurer’s office at the end of the year to make sure that out of state owners who sell property worth more than $100,000 pay their fair share of state income tax. So 2% of the total purchase price is collected to go towards the state income tax that is due at the end of the year if you sold property in Colorado and made a profit on it.