New JerseyDetention service businesses would pay contract fees and income surcharges
Businesses serving New Jersey detention facilities would pay an 8% contract fee, a state cost-recovery fee, and, if they operate a private facility, an added income surcharge.
What it does
For-profit businesses serving New Jersey detention facilities would pay an 8% fee based on what a public entity pays or agrees to pay them. Reentry and inmate services, and certain pass-through contracts, are excluded.
The state would charge detention service businesses a fee tied to state costs for inspection, oversight, emergency response, and public health services.
Businesses operating private correctional facilities would pay an additional tax based on taxable income. Three percent of the surcharge revenue would be set aside for state and local programs, and local police and fire services.
Argument forA share of the surcharge revenue could help pay for state and county programs, and police and fire services near detention facilities.
Argument againstIf businesses raise prices to cover the taxes and fees, the State could pay more for the detention services it buys.
More detail
Businesses would pay a fee based on what a public entity pays or agrees to pay for their detention services. It covers for-profit businesses providing services to criminal or civil detention facilities in New Jersey. It excludes reentry and inmate services, and pass-through contracts for services such as calls, video visits, email, and commissary services.
The Division of Taxation would assess businesses a fee to recover state costs related to detention services. The fee applies to correctional service businesses. The estimate says the two private correctional facilities operating in New Jersey would be subject to it. The fee would be based on state costs for inspection, oversight, emergency response, and public health services related to detention services.
Businesses would pay an additional tax equal to 3% of allocated taxable net income for a period in which they operate a private correctional facility in New Jersey. The surtax applies to correctional service businesses operating a private correctional facility in New Jersey. Three percent of the surtax revenue would be appropriated, with one percent each for state programs, county programs, and the municipality's police and fire services. The surtax applies for each privilege period in which a business operates a private correctional facility in New Jersey.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 28Received in the Senate, Referred to Senate Budget and Appropriations CommitteeLatest
- Jun 30Passed by the Assembly (57-22-0)Passed 1st Chamber
- Jun 30Motion To Table (48-22-0) (Greenwald)
- Jun 30Motion To As (Myhre)
- Jun 30Motion To Table (47-22-0) (Greenwald)
- Jun 30Motion To Aa (Fantasia)
- Jun 23Reported out of Assembly Comm. with Amendments, 2nd ReadingMinor
- Jun 8Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations CommitteeMinor
- Jun 8Transferred to Assembly Community Development and Women's Affairs CommitteeMinor
- Mar 19Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations CommitteeMinor
- Feb 19Introduced, Referred to Assembly Public Safety and Preparedness CommitteeIntroduced
Taxes & BudgetCriminal JusticePublic Safety