S3616

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.