Anyone making mineral royalty payments to a shareholder (remitter) from a property in Montana must withhold tax if the thresholds are met and file a Montana Annual Mineral Royalty Withholding Tax Reconciliation (Form RW-3). (15-30-2536 through 15-30-2547, MCA).
A remitter is any individual, entity, or trust that:
- Pays royalties to a royalty owner or their assignee
- Delivers minerals to a purchaser on behalf of a royalty owner or their assignee
- Pays a portion of the proceeds on mineral sales to a royalty owner or their assignee
If you are a remitter, we will notify you if you must withhold taxes on mineral royalty payments.
You can register for a mineral royalty withholding account using our TransAction Portal (TAP) or using the Montana Department of Revenue Business Registration (Form GenReg).