California Legislature Moves to End Tax Breaks for Private Immigration Detention Facilities

-Editorial 

The California Legislature has approved Senate Bill 420, authored by Sen. Steve Padilla, D-San Diego, which would restrict property tax exemptions for nonprofit organizations connected to private immigration detention facilities.

The bill follows a KPBS investigation that reported the Brawley Community Foundation, a nonprofit organization that owns the Imperial Regional Detention Facility in Imperial County, avoided at least $6 million in property taxes through California’s Welfare Exemption.

The Welfare Exemption provides property tax relief to qualifying nonprofit organizations that use their property for charitable, religious, hospital, or scientific purposes.

According to the KPBS investigation, much of the Brawley Community Foundation’s reported $40 million in revenue is connected to the detention facility, which a private prison contractor operates.

Complaints filed against the facility have alleged poor conditions, excessive use of solitary confinement and inadequate medical care. The complaints also allege that two detainees died after not receiving adequate medical attention.

Padilla said SB 420 is intended to prevent taxpayers from indirectly subsidizing privately operated immigration detention facilities through charitable property tax exemptions.

“Our laws should always reflect our values,” Padilla said in a statement. “Californians should not be forced to subsidize private immigration detention centers through tax breaks intended for true charitable organizations.”

The bill would amend California’s Revenue and Taxation Code to clarify that property would not qualify for the Welfare Exemption when any portion is used as a detention center operated by a for-profit company, even when the property is otherwise used for charitable, religious, hospital or scientific purposes.

Supporters said the measure would prevent nonprofit organizations connected to private detention facilities from receiving property tax benefits based solely on their nonprofit status.

Geoff Green, CEO of the California Association of Nonprofits, which supports the legislation, said private detention facilities should not qualify as public charities.

“We are grateful to Senator Padilla for leading the effort to close this loophole in California’s tax code,” Green said.

SB 420 passed the Senate 32-0 and the Assembly 62-10, receiving bipartisan support in both chambers. The bill now goes to Gov. Gavin Newsom for consideration.