Relating to withholding tax on income of nonresidents from natural resources royalty payments

HB 5159 requires companies (lessees) that pay royalties for West Virginia natural resources (like coal, oil, or natural gas) to out-of-state owners to withhold West Virginia personal income tax from those payments. Lessees must withhold tax on payments exceeding $1,000 annually, calculating the amount to match the estimated tax owed by the nonresident owner. Withheld funds are paid to the state tax office and credited toward the owner’s tax liability, with refunds available for overpayment. The bill directly affects lessees in the energy sector and nonresident owners of mineral rights in West Virginia.