The bill modifies the retail tax compacts between the state of Washington and federally recognized tribes within the state, specifically 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 distribution of state sales tax, state use tax, and certain state business and occupation taxes. Notably, the bill establishes that compacting tribes can receive 100% of certain state business and occupation tax revenues and increases the cap for state sales and use tax collections from $500,000 to $500,000, with additional provisions for revenue sharing based on the completion of qualified capital investments.

Additionally, the bill introduces 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 effective 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
Bill as Passed Legislature: 43.06.523
Session Law: 43.06.523