To require operators of gas and oil wells to withhold royalty taxes due from the lease holder and remit said withholdings to the appropriate County Tax Office.

HB 4741 requires oil and gas operators (lessees) to withhold West Virginia personal income tax from royalty payments made to property owners (lessors) and remit the withheld amount to the state Tax Commissioner. Property owners receive credit for the withheld tax against their income tax liability and can claim refunds for overpayments. Operators must provide annual statements detailing withheld amounts to property owners and file reconciliation reports with the Tax Commissioner by January 31 each year, including copies of statements provided to lessors. This law directly affects gas and oil well operators and property owners receiving royalty payments from mineral leases.