This bill modifies the retail tax compacts between the state of Washington and federally recognized tribes within the state by increasing the 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, as well as a specified amount of state sales and use tax revenues. Notably, the bill raises the cap for state sales and use tax collected 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, including provisions for determining when a qualified capital investment is complete, verifying compliance, and resolving disputes. It also ensures that local taxes remain unaffected by the provisions of this act and sets a timeline for the department of revenue to begin administering these changes starting July 1, 2027, with the act applying to compacts or amendments effective on or after January 1, 2028.

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