Bill > HB1355

This bill modifies the existing legal framework for tax revenue-sharing compacts between the state of Washington and federally recognized tribes by increasing the percentage of state sales and use tax revenues that tribes can receive when they complete a qualified capital investment. Specifically, the bill changes the revenue-sharing percentages so that tribes can receive 100% (instead of 60% or 50% previously) of state sales and use tax collected over a $500,000 annual cap, both for new developments and for existing businesses, once they have completed a qualified capital investment. A qualified capital investment is defined as a contribution to the development and construction of a project agreed upon by the governor and the tribe. The bill also clarifies various definitions related to tribal lands, compact coverage areas, and transaction types, and establishes provisions for how these compacts will be negotiated, administered, and resolved. The changes are set to take effect for compacts or compact amendments with an effective date on or after January 1, 2028, and the Department of Revenue may begin administering these provisions as early as July 1, 2027. The bill does not limit or affect local tax authorizations and is designed to provide more favorable tax revenue sharing terms for tribes that make significant capital investments in their communities.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1355&Year=2025&Initiative=false