WV HB5159

Requires lessees of West Virginia real estate to withhold state personal income tax from natural resources royalty payments made to nonresident lessors, effective for tax years beginning after December 31, 2026

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

Covers royalty payments for minerals (coal, oil, natural gas, petroleum, rare earth metals, etc.), timber, and other natural resources, including rents, delay rentals, lease bonus payments, and overriding royalty interests

Lessees must provide annual withholding statements to lessors and file reconciliation reports with the Tax Commissioner by January 31 each year; electronic filing required for lessees with 25 or more lessors

Nonresident lessors receive credit for withheld amounts against their West Virginia tax liability and may claim refunds for overpayments