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Representative Hansen’s 50% tax on private detention centers laid over after hours of debate
Summary
Representative Hansen proposed a 50% gross‑receipts tax on detention centers operated by non‑governmental entities; supporters urged recouping taxpayer costs while members raised concerns about jobs, whether facilities exist in Minnesota, and the tax rate’s scale. The committee laid the measure over for possible inclusion in the 2026 tax bill.
Representative Hansen introduced House File 3909 on March 4, 2026, proposing a 50% tax on the gross receipts of detention centers operated by non‑governmental entities, which the sponsor said would target large private contractors that profit from government contracts.
"House File 3909 proposes a 50% tax on the gross receipts of detention centers operated by project non governmental entities," Representative Hansen said, framing the measure as a way to return taxpayer funds to the public rather than to large corporate shareholders. In her presentation she cited public reporting about GEO Group and CoreCivic profits and argued the tax would help offset costs Minnesotans incur when federal enforcement activity is carried out in the state.
Nancy Fitzsimmons, a professor of social work at Minnesota State University, Mankato, testified in support, telling the committee social workers see the consequences for families and communities and that even a modest revenue stream could help fund services: "We social workers are going to just keep stepping up because that's what we do."
Committee members focused on several themes: the potential local economic impact of closing or reopening facilities (members discussed Appleton as an example of a rural community that could gain jobs), whether any private detention centers currently operate in Minnesota, and the practical effect of a 50% gross‑receipts tax. One member observed there are no private detention facilities in Minnesota at present and questioned whether the measure would generate meaningful revenue; another noted a revenue estimate was included in the bill packet and encouraged members to review its assumptions.
Members also debated how the 50% figure was chosen. Representative Hansen said similar proposals have been discussed in other states and described the percentage as negotiable in pursuit of the proposal’s principal goal: returning government dollars to public uses rather than to corporate shareholders.
After extended discussion and brief public testimony, Representative Hansen renewed her motion and House File 3909 was laid over for possible inclusion in the 2026 tax bill. The committee did not take a final vote on the substantive proposal during the hearing.
