- January 31 with an automatic extension to February 28
- Withholding Payments
6% of Net Royalties
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). For more information, please review our Mineral Royalty Withholding Tax Guide (PDF, 321 KB).
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).
The Montana Annual Mineral Royalty Withholding Tax Reconciliation (Form RW-3) and all Forms 1099-MISC and 1042-S are due on January 31 with an automatic extension to February 28.
You must file the annual reconciliation and Forms 1099-MISC and 1042-S even if you do not need to withhold taxes on mineral royalty payments.
The Mineral Royalty Withholding is 6% of the net royalty paid to the royalty owner.
We will grant you the authority to forego withholding tax on royalty payments:
- Less than $166 in the current period
- Less than $2000 if paid annually
Reporting and Payment Options
- Pay through our TransAction Portal (TAP),
- Pay using Business Tax Express,
- Make an ACH Credit Payment
- Use the Mineral Royalty Withholding Payment Voucher (Form RW-1)
Mineral Royalty Withholding Payments are due on the last day of the month following the end of the calendar quarter:
- First Quarter
- April 30
- Second Quarter
- July 31
- Third Quarter
- October 31
- Fourth Quarter
- January 31
Penalties and Interest
Mineral Royalty Withholding is subject to uniform penalties and interest.