Relating to nonresident income tax for natural resources royalty payments received from lessees

SB 840 requires mining and energy companies (lessees) in West Virginia to withhold state income tax from royalty payments made to out-of-state owners (nonresident lessors) of mineral rights. The bill mandates that lessees withhold tax equivalent to what the nonresident would owe on these payments, unless annual payments are under $1,000. Withheld funds must be paid to the state tax agency, with nonresidents receiving credits against their own tax liability or refunds for overpayment. This targets a revenue gap identified by the legislature, affecting companies paying royalties to owners living outside West Virginia. The bill is currently in the Senate Finance Committee.