Immigration Facility Contractors Warn on California Tax Proposal

A proposed new corporate tax tied to immigration enforcement that California Democrats want to pass this legislative session has private detention facility operators warning investors about its potential impacts to their business.

The bill (A.B. 1633) from Assemblymember Matt Haney (D) would levy a 50% tax on gross receipts from contracts to operate private immigration detention facilities in California. There are two companies that do such work in the state, according to the bill sponsor’s office: CoreCivic Inc. and the GEO Group Inc.

The companies are among the country’s largest private sector operators of correctional and detention ...