HB5159

West Virginia HB5159 requires lessees to withhold state income tax on natural resources royalty payments to nonresident lessors.

West Virginia HB5159 mandates that lessees of in-state real estate withhold West Virginia personal income tax on natural resources royalty payments made to nonresident lessors. The bill defines "natural resource" to include minerals, petroleum, natural gas, and timber. Lessees must submit annual statements to lessors and file withholding returns with the Tax Commissioner. The bill also outlines penalties for non-compliance and allows the Tax Commissioner to set due dates and create rules for implementation. The withholding is optional for lessors receiving less than $1,000 annually.