WV HB3231

Requires lessees of West Virginia real estate to withhold state personal income tax from natural resources royalty payments made to out-of-state lessors, with the Tax Commissioner prescribing the calculation method

Withholding is optional for lessors receiving less than $1,000 annually in royalty payments from a lessee

"Natural resources" includes minerals, coal, petroleum, natural gas, timber, and other resources taxable under state severance tax law; covered payments include rents, delay rentals, lease bonuses, royalty interests, and overriding royalty interests

Lessees must provide annual withholding statements to lessors, file reconciliation reports by January 31 each year, and use electronic filing if reporting for 25 or more lessors (with $25 per lessor penalty for non-compliance)

Takes effect for taxable years beginning after December 31, 2025, with the Tax Commissioner authorized to promulgate rules including emergency rules for implementation