Imposes 50 percent tax on gross receipts from operation of private carceral facilities in State; establishes "Immigrant Protection Fund."

S3616

SENATE, No. 3616

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Imposes 50 percent tax on gross receipts from
operation of private carceral facilities in State; establishes "Immigrant
Protection Fund."

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
imposing a tax on gross receipts from the operation of
private carceral facilities and supplementing Title 54 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a. For the purposes of
this section:

���� "Gross receipts"
means all monies received by a taxpayer pursuant to any contract with a public
entity relating to the operation of a private carceral facility.

���� "Private carceral
facility" means
a privately owned facility that is
located in the State, houses or detains individuals for violations of State or
federal law, and is operated pursuant to a contract with a public entity
.

���� "Public entity"
means any federal, State, county, or municipal entity.

���� "Taxpayer" means any
individual or business entity that operates a private carceral facility.

���� b.��� Beginning on January 1,
2027, and each year thereafter, each taxpayer that operates a private carceral
facility shall be assessed and shall pay a tax equal to 50 percent of the gross
receipts derived by the taxpayer from the operation of a private carceral
facility during the preceding calendar year.

���� c.���� Each taxpayer subject
to the tax imposed pursuant to subsection b. of this section shall annually
file a return for the preceding calendar year with the director on such forms and
in such a manner as the director shall prescribe.� The return shall indicate
the total dollar value of the contract entered into by the taxpayer for the
operation of the private carceral facility and include a copy of such
contract.� At the time a return is filed pursuant to this subsection, a
taxpayer shall remit the full amount of the fee due.� A taxpayer that fails to
file a return when due or fails to pay the amount of the fee when due shall be
subject to such penalties and interest as provided in the "State Uniform
Tax Procedure Law," R.S.54:48-1 et seq.

���� d.��� All revenues received by
the State from the tax imposed pursuant to this section shall be deposited by
the State Treasurer in the "Immigrant Protection Fund" established
pursuant to section 2 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).

���� 2.��� There is established a
nonlapsing, revolving fund in the General Fund, to be known as
the "Immigrant Protection Fund," which shall be
administered by the Department of the Treasury.� The fund shall be credited
with all revenues received by the State from the tax imposed pursuant to
section 1 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).� Any monies deposited into the
fund shall be annually appropriated by the Legislature exclusively to support
the provision of immigration-related services in the State
.

���� 3.��� Notwithstanding the
provisions of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.) to the contrary, the Department of the Treasury may adopt,
immediately, upon filing with the Office of Administrative Law, such rules and
regulations as the department deems necessary to implement the provisions of
P.L. , c. (C. )
(pending before the Legislature as this bill), which regulations shall be
effective for a period not to exceed 180 days from the date of the filing.�
Thereafter, the department shall amend, adopt, or readopt the regulations in
accordance with the requirements of the �Administrative Procedure Act,�
P.L.1968, c.410 (C.52:14B-1 et seq.).

���� 4.��� This act shall take
effect immediately.

STATEMENT

���� This bill imposes a tax on the
gross receipts derived from the operation of private carceral facilities within
the State.

���� Specifically, the bill
requires any individual or business entity that operates a private carceral
facility to pay a tax equal to 50 percent of the taxpayer's gross receipts
derived from the operation of a private carceral facility during the previous
year.

���� For the bill's purposes,
"gross receipts" means all monies received by a taxpayer pursuant to
any contract with a public entity relating to the operation of a private
carceral facility.� "Private carceral facility" is defined as a privately
owned facility that is located in the State, houses or detains individuals for
violations of State or federal law, and is operated pursuant to a contract with
a public entity.

���� The bill also establishes the
"Immigrant Protection Fund" as a nonlapsing, revolving fund and
requires all revenues generated from the tax imposed under the bill to be
deposited by the State Treasurer into the fund.� Any monies deposited into the
fund are required to be annually appropriated exclusively to support the
provision of immigration-related services in the State.