CAL.Regulation
California imposes 25% annual tax on private detention facility operators from 2028
Governor Gavin Newsom signed AB 1633 on September 29, 2026. The Private Detention Facility Tax Law, Revenue and Taxation Code section 53000 and following, imposes an annual tax on private detention facility operators equal to 25% of their California-derived gross income, beginning July 1, 2028, whether the contracting agency is federal, state or local. The CDTFA administers the tax, and revenue goes to the Due Process for All Fund.
Enrolled text (California Legislative Information) → · Office of the Governor
Key points
- Operators of private detention facilities, as defined in Government Code section 7320, owe 25% of gross income derived from California.California Legislative Information
- The tax is imposed each July 1 beginning in 2028; as a tax levy, the act took effect immediately on signing.California Legislative Information
- Administered by the California Department of Tax and Fee Administration.California Legislative Information
- Revenues are deposited in the Due Process for All Fund.California Legislative Information
- Chapter 740, Statutes of 2026; signed as part of the September 29 immigration-enforcement package.California Legislative InformationOffice of the Governor
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor