PRIA Logo™
WashingtonHB 13552025-2026 Regular SessionHouseWALLET

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.

Sponsored By: April Berg (Democratic)

Became Law

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Tax sharing with tribes grows after investment

The law shares state sales, use, and some B&O taxes with compacting tribes. From the compact’s start, a tribe gets 100% of covered B&O tax on qualified transactions. Each year, it also gets the first $500,000 of state sales and use tax from qualified transactions; in the month the cap is hit, non‑new‑development receipts count first. Above $500,000, the tribe gets 25% from new‑development taxpayers, or 100% if it finished a qualified capital investment. For non‑new‑development taxpayers, the tribe gets 25% of over‑cap amounts starting January 1 of the fourth calendar year after the compact starts, or 100% then if the investment is done.

Rules to set up tribal tax compacts

The Governor can sign retail tax compacts with Washington tribes. Before approval, the Governor must find the tribe’s qualified capital investment is substantially proportionate to its expected compact tax revenue compared to other compacts. The estimate must exclude revenue from new development. Every compact must set how to decide when the investment is complete, how to verify compliance, who does what, and how to resolve disputes without court. Compacts also settle current and future tax disputes for covered transactions during the compact.

State runs payments and tax data rules

The Department of Revenue runs tax administration and collections for compacted transactions and cannot charge the tribe. The department may seek funding from the Legislature to cover its costs. The state pays tribes monthly, within 60 days after it receives the tax. Tribes can see department records tied to their payments but must keep the information confidential under state tax‑privacy rules. If the department issues a taxpayer a refund or credit for taxes that went to a tribe, the tribe must repay that amount. Payments to tribes do not reduce money set aside for performance audits.

Free Policy Watch

You just read the policy. Now see what it costs you.

Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.

Pick a topic to get started

My TaxesMy HealthMy BudgetMy MoneyMy Freedom
Or tell us something more specific

Sponsors & Cosponsors

Sponsor

  • April Berg

    Democratic • House

Cosponsors

  • Chris Stearns

    Democratic • House

  • Cindy Ryu

    Democratic • House

  • Debra Lekanoff

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Julio Cortes

    Democratic • House

  • Lillian Ortiz-Self

    Democratic • House

  • Mary Fosse

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Sharon Wylie

    Democratic • House

  • Strom Peterson

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 183 • No: 55

Senate vote • 4/9/2025

3rd Reading & Final Passage

Yes: 40 • No: 8

House vote • 3/20/2025

3rd Reading & Final Passage

Yes: 71 • No: 24 • Other: 3

House vote • 3/20/2025

Final Passage on Reconsideration

Yes: 72 • No: 23 • Other: 3

Actions Timeline

  1. Effective date 7/27/2025.

    4/22/2025House

  2. Chapter 136, 2025 Laws.

    4/22/2025House

  3. Governor signed.

    4/22/2025legislature

  4. Delivered to Governor.

    4/17/2025legislature

  5. President signed.

    4/14/2025legislature

  6. Speaker signed.

    4/11/2025legislature

  7. Third reading, passed; yeas, 40; nays, 8; absent, 1; excused, 0.

    4/9/2025House

  8. Rules suspended. Placed on Third Reading.

    4/9/2025House

  9. Placed on second reading by Rules Committee.

    4/7/2025House

  10. Passed to Rules Committee for second reading.

    4/4/2025House

  11. Minority; without recommendation.

    4/3/2025House

  12. Minority; do not pass.

    4/3/2025House

  13. WM - Majority; do pass.

    4/3/2025House

  14. First reading, referred to Ways & Means.

    3/24/2025House

  15. Third reading, passed; yeas, 71; nays, 24; absent, 0; excused, 3.

    3/20/2025House

  16. Rules suspended. Placed on Third Reading.

    3/20/2025House

  17. Third reading, passed; yeas, 72; nays, 23; absent, 0; excused, 3.

    3/20/2025House

  18. Vote on third reading will be reconsidered.

    3/20/2025House

  19. Rules Committee relieved of further consideration. Placed on second reading.

    3/19/2025House

  20. Referred to Rules 2 Review.

    2/5/2025House

  21. Minority; without recommendation.

    2/4/2025House

  22. FIN - Majority; do pass.

    2/4/2025House

  23. FIN - Executive action taken by committee.

    2/4/2025House

  24. First reading, referred to Finance.

    1/17/2025House

  25. Introduced

    1/17/2025House

Bill Text

Related Bills

Back to State Legislation

Take It Personal

Get Your Personalized Policy View

Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in