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.

SB 5264 modifies tax compacts between Washington State and federally recognized tribes by increasing revenue-sharing percentages for tribes that complete qualified capital investments. It directly affects tribes with existing compacts, requiring the state to pay them 100% of state sales/use tax revenue above a $500,000 annual cap (instead of 25%) on transactions not meeting "new development" requirements, starting in the fourth year after the compact's effective date. The bill also establishes processes for verifying capital investments, resolving disputes, and maintaining confidentiality of tax records. This change aims to incentivize tribal infrastructure projects while clarifying revenue distribution terms under current compacts.