AB 1633: Taxation: private detention facilities.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law imposes taxes upon income and real property, and taxes upon certain transactions and excise taxes. The Fee Collection Procedures Law provides procedures for the collection of certain fees and surcharges and is administered by the California Department of Tax and Fee Administration (CDTFA). Under existing law, a violation of the Fee Collection Procedures Law is a crime.

This bill would, beginning July 1, 2028, establish the Private Detention Facility Tax Law, which would impose an annual tax on each private detention facility operator, as defined, equal to 25% of the operator’s gross income, as defined, for the prior fiscal year, as defined. The bill would establish the Due Process for All Fund in the State Treasury, except as provided, and would require all revenues collected, less refunds and reimbursement to the CDTFA, be deposited into the fund. In the event that Assembly Bill 2465 is enacted, the bill would instead require all revenues be deposited into the Due Process for All Fund as established by that bill. The bill would direct moneys in the fund, upon appropriation by the Legislature, be used for immigration-related services. The bill would require the CDTFA to administer and collect the tax pursuant to the Fee Collection Procedures Law. By expanding the application of the crimes associated with the Fee Collection Procedures Law, the bill would impose a state-mandated local program.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would take effect immediately as a tax levy.

Sponsors

Sponsors by party (alphabetical): Democratic 18

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 29, 2026Chaptered by Secretary of State - Chapter 740, Statutes of 2026.
2. September 29, 2026Approved by the Governor.
3. September 8, 2026Enrolled and presented to the Governor at 3:30 p.m.
4. August 28, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 57. Noes 17. Page 6790.).
5. August 27, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 27, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 10.).
7. August 24, 2026Read second time. Ordered to third reading.
8. August 21, 2026Read third time and amended. Ordered to second reading.
9. August 13, 2026Read second time. Ordered to third reading.
10. August 13, 2026From committee: Do pass. (Ayes 5. Noes 2.) (August 13).
11. August 3, 2026In committee: Referred to APPR. suspense file.
12. June 24, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.