Are you a tenant who pays rent to a non-resident individual, estate or trust?  If so, beware!  Act 43 of 2017 created a withholding obligation for certain lessees of Pennsylvania real estate to non-residents and also expanded the requirements with respect to when a copy of Federal Form 1099-MISC is required to be filed with the Pennsylvania Department of Revenue.  Anyone leasing real estate in Pennsylvania, who makes a lease payment in the course of their trade or business to a non-resident lessor, and who is an individual, estate, or trust, is required to withhold from such payments an amount equal to the tax rate specified at 72 P.S. § 7302 (currently, 3.07%).  Withholding is optional for lessees paying a non-resident lessor less than $5,000 annually.  Lessees withholding tax are required to file a Federal Form 1099-MISC with both the lessor and the PA Department of Revenue showing the amount paid to them and the amount of the withholding.

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