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:
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:
Mineral Royalty Withholding Payments are due on the last day of the month following the end of the calendar quarter:
First Quarter | April 30 |
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Second Quarter | July 31 |
Third Quarter | October 31 |
Fourth Quarter | January 31 |
Mineral Royalty Withholding is subject to uniform penalties and interest.