Tax on gross revenues of private detention facilities imposed.

This bill introduces a new 50 percent tax on the gross revenues of private detention facilities operating in Minnesota that are contracted by government entities. The tax applies to all money received by these facilities for providing incarceration or detention services and begins taking effect after December 31, 2026. The legislation defines private detention facilities as for-profit entities that hold people awaiting trial or serving court-imposed sentences, while excluding residential facilities like halfway houses and work release centers. Facilities that have already paid similar taxes to other states can claim a credit for those payments to avoid double taxation. All tax revenues collected will be deposited into Minnesota's general fund.