GEO Group’s annual disclosure report calls out Assemblymember Matt Haney’s (D-San Francisco) AB 1633, which would impose a 50% gross receipts tax on private detention corporations, as credible risk to operations in California.
SACRAMENTO, CA — One of the nation’s largest private immigration detention companies is warning its investors that California may soon take a major bite out of its profits.
In its newly filed annual report to the Securities and Exchange Commission, GEO Group flagged Assembly Bill 1633 by Assemblymember Matt Haney (D-San Francisco) as a financial risk – a rare move that underscores the growing pressure facing corporations that profit from federal immigration detention.
The disclosure, included in the company’s 10-K filing, states:
“Proposed and future legislation could indirectly impose additional financial restrictions with respect to our business […] AB1633 would impose the 50% tax on gross receipts we receive in connection with the operation of each of the detention facilities we operate in California […] We can provide no assurance that it will not be enacted, and if enacted, would not impact our results of operations and cash flows.”
The bill would impose a 50% gross receipts tax on private corporations operating immigration detention facilities in California under federal contracts, targeting a business model that has generated hundreds of millions of dollars annually.
“When a billion-dollar corporation is warning investors about one bill in California, it means we’ve got their attention,” said Assemblymember Haney. “These companies have made enormous profits detaining people, often in dangerous and inhumane conditions. This bill says: if you’re going to profit off human suffering and family separation in California, you’re going to pay for the harm you're causing.”
California is home to seven privately operated, immigration detention facilities. State inspections and investigations have repeatedly documented unsafe conditions, including inadequate medical care, lack of basic hygiene supplies, and insufficient access to food and water.
In a recent inspection of a newly opened ICE detention facility in Kern County – the largest in the state – the California Department of Justice found “dangerous living conditions” and a “lack of adequate medical care,” citing too few doctors and widespread deficiencies in basic services.
Despite these findings, private detention corporations continue to receive substantial federal payments. GEO Group alone receives more than $140 million to operate facilities in Adelanto and Desert View, along with over $100 million for the Golden State Annex and Mesa Verde centers. CoreCivic receives roughly $130 million to operate the California City facility and more than $138 million for its Otay Mesa center.
“Taxpayers are footing the bill for a system that has repeatedly failed basic standards of care,” Haney added. “If these corporations want to continue operating here, they should not be able to do so without accountability.”
“Everyone in California deserves safety, dignity and due process, but each year, thousands of Californians are detained in private detention facilities found to be dangerous, unsanitary and unsafe.” said Bruno Huizar, supervising policy manager, California Immigrant Policy Center. “This bill underscores the health and safety of people should always be prioritized over corporate profits.”
AB 1633 will be heard in the Assembly Revenue and Taxation Committee and in the coming weeks.
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