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.