Bill > SB5264

This bill modifies the existing retail tax compacts between Washington state and federally recognized tribes by increasing the revenue-sharing percentages for tribes that complete a qualified capital investment. Specifically, the bill changes the percentage of state sales and use taxes that compacting tribes can receive from taxpayers meeting new development requirements. Under the current law, tribes receive 25% of tax revenues over a $500,000 cap, but this bill increases that to 100% if the tribe has completed a qualified capital investment. The bill also applies this 100% revenue-sharing rate to taxpayers not meeting new development requirements starting in the fourth calendar year after the compact's effective date. Additionally, the bill clarifies definitions related to compacts, such as "new development," "compact covered area," and "qualified capital investment." The legislation provides a framework for negotiating these tax compacts, including provisions for dispute resolution, tax administration, and confidentiality. Importantly, the bill does not affect local tax authorities and sets implementation dates in 2027 and 2028, giving state and tribal governments time to prepare for these changes.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5264&Year=2025&Initiative=false