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 collected from qualified transactions. Notably, the bill raises the cap for state sales and use tax from $500,000 and adjusts the revenue-sharing percentages for tribes that have completed qualified capital investments to 100% for amounts exceeding the cap.

Additionally, the bill establishes new sections that clarify the administration of these compacts, including provisions for dispute resolution, compliance verification, and confidentiality of tax information. It specifies that the Department of Revenue may begin administering these 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. The bill ensures that local taxes authorized under existing laws are not affected by these changes.

Statutes affected:
Original Bill: 43.06.523
Bill as Passed Legislature: 43.06.523
Session Law: 43.06.523