Taxation: private detention facilities.

Plain English Breakdown

The official source does not provide specific details on how funds will be used or the exact nature of the expanded criminal penalties.

Tax on Private Detention Facilities

AB-1633 establishes an annual tax of 50% of gross receipts for private detention facility operators starting January 1, 2027 and creates the Due Process for All Fund to support immigration-related services.

What This Bill Does

• Imposes a new annual tax of 50% of gross receipts on each private detention facility operator starting January 1, 2027.
• Establishes the Due Process for All Fund in the State Treasury where all collected taxes go after refunds and reimbursements to the California Department of Tax and Fee Administration (CDTFA).
• Requires CDTFA to collect this tax according to existing fee collection procedures.

Who It Names or Affects

• Private detention facility operators
• The California Department of Tax and Fee Administration (CDTFA)

Terms To Know

Gross receipts

Total income from business operations before expenses.

Due Process for All Fund

A fund in the State Treasury that collects taxes from private detention facilities and uses them for immigration-related services.

Limits and Unknowns

• The bill does not specify how much money will be collected or what specific services will receive funding.
• It requires a two-thirds majority vote to pass because it increases state taxes.

Official Summary Text

AB 1633, as introduced, Haney.
Taxation: private detention facilities.
Existing law imposes taxes upon income and real property, and taxes upon certain transactions and excise taxes. The Fee Collection Procedures Law provides procedures for the collection of certain fees and surcharges and is administered by the California Department of Tax and Fee Administration (CDTFA). Under existing law, a violation of the Fee Collection Procedures Law is a crime.
This bill would, beginning January 1, 2027, establish the Private Detention Facility Tax Law, which would impose an annual tax on each private detention facility operator, as defined, equal to 50% of the operator’s gross receipts, as defined. The bill would establish the Due Process for All Fund in the State Treasury, would require all revenues collected, less refunds and reimbursement to the CDTFA, be deposited into the fund, and would direct
moneys in the fund, upon appropriation by the Legislature, be used for immigration-related services. The bill would require the CDTFA to administer and collect the tax pursuant to the Fee Collection Procedures Law. By expanding the application of the crimes associated with the Fee Collection Procedures Law, the bill would impose a state-mandated local program.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of
2
/
3
of the membership of each house of the Legislature.
The California Constitution requires the state to reimburse local agencies and school
districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF