Modifying retail taxes compacts between the state of Washington and federally recognized tribes located in Washington state by increasing the revenue-sharing percentages when a compacting tribe has completed a qualified capital investment.

House Bill 1355 modifies existing retail tax compacts between the state of Washington and federally recognized tribes within the state. It increases the revenue-sharing percentages for state sales and use taxes collected on qualified transactions if a compacting tribe completes a "qualified capital investment." Specifically, for tribes making such an investment, the state's share of sales and use tax revenue above an initial $500,000 threshold will be 100% for both new and existing developments. The bill also outlines required provisions for these compacts, such as processes for verifying compliance and resolving disputes.