Taxation: private detention facilities

The tax applies whether a facility contracts with a federal, state, or local agency. Net revenue, subject to legislative appropriation, will support immigration-related services.

What the law does ​

• Creates the Private Detention Facility Tax Law.
• Taxes each private detention facility operator 25% of its gross income attributable to California for each fiscal year.
• Requires operators to register with the California Department of Tax and Fee Administration and file an electronic annual return and payment by July 31 after the fiscal year closes.
• Directs the California Department of Tax and Fee Administration to collect and enforce the tax, including through regulations, refunds, and appeals.
• Deposits revenue after refunds and administrative reimbursement into the Due Process for All Fund for immigration-related services, when appropriated by the Legislature.

Who it affects ​

• Private detention facility operators, including those contracting with federal, state, or local agencies.
• The California Department of Tax and Fee Administration.
• Recipients of immigration-related services funded through legislative appropriations.

Context ​

The tax takes effect July 1, 2028, while the act itself took immediate effect as a tax levy.