This bill modifies the retail tax compacts between the state of Washington and federally recognized tribes within the state by increasing revenue-sharing percentages for tribes that have completed a qualified capital investment. It amends RCW 43.06.523 to allow the governor to negotiate compacts that include provisions for the compacting tribe to receive 100% of certain state business and occupation tax revenues, and a specified amount of state sales and use tax revenues. Notably, the bill raises the cap for state sales and use tax from $500,000 to $500,000 and increases the percentage of tax revenue that compacting tribes can receive from 60% to 100% if they have completed a qualified capital investment.

Additionally, the bill establishes new sections that clarify the administration of these compacts, stating that the Department of Revenue may begin implementing the provisions on or after July 1, 2027, and that the act applies to compacts or amendments with an effective date on or after January 1, 2028. It also ensures that local taxes authorized under existing state laws are not affected by this act. The changes aim to enhance the financial benefits for tribes that invest in capital projects, thereby fostering economic development within tribal communities.

Statutes affected:
Original Bill: 43.06.523