Bill > AB1633

This bill, beginning January 1, 2027, establishes the Private Detention Facility Tax Law, which will impose an annual tax of 50% of gross receipts on operators of private detention facilities in California, meaning all money received from contracts related to operating these facilities. The California Department of Tax and Fee Administration (CDTFA) will administer and collect this tax, using procedures outlined in the Fee Collection Procedures Law, which also defines violations of this law as crimes. All revenue collected, after refunds and administrative costs for the CDTFA, will be deposited into a newly created "Due Process for All Fund" in the State Treasury, and these funds will be used for immigration-related services as appropriated by the Legislature. This bill is considered a tax levy and will take effect immediately.