WV SB840

Requires lessees of West Virginia real estate to withhold state personal income tax from natural resources royalty payments made to nonresident lessors (individuals, estates, trusts, or business entities)

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

Natural resources covered include minerals, coal, petroleum, natural gas, timber, and other resources; payments include rents, delay rentals, royalty interests, lease bonus payments, and overriding royalty interests

Lessees must provide annual withholding statements to lessors and file reconciliation returns with the Tax Commissioner by January 31 each year; electronic filing required for lessees with 25 or more lessors (with $25 per lessor penalty for noncompliance)

Effective for taxable years beginning after December 31, 2025