Imperial County backs state bill to strip tax exemptions from private detention centers
IMPERIAL COUNTY, Calif. (KYMA) - The Imperial County Board of Supervisors voted unanimously Tuesday to support a sweeping state bill aimed at closing a property tax loophole utilized by nonprofit organizations tied to private immigration detention centers.
The 5-0 vote formally aligns local leadership with Senate Bill (SB) 420, an initiative designed to strip charitable property tax welfare exemptions from nonprofits that own or operate these facilities.
The resolution authorizes the board chairwoman to submit a formal letter of support to Sacramento lawmakers.
The legislative push follows a high-profile investigative report by KPBS, which revealed that the Brawley Community Foundation, a local nonprofit organization, successfully avoided paying at least $6 million in local property taxes through California's "Welfare Exemption" program.
The foundation owns both the building and the land of the Imperial Regional Detention Facility in Calexico, which is utilized by U.S. Immigration and Customs Enforcement (ICE).
While the foundation maintains a nonprofit status, the facility itself is run for profit by a private prison contractor.
State Sen. Steve Padilla (D-District 18), the author of SB 420, argues that California's tax laws were never meant to subsidize corporate-run lockups.
"California's taxpayer dollars and our tax-exempt laws should not be used to funnel money to, or to subsidize, private prisons in California or private detention facilities who are holding immigrants," Sen. Padilla said. "This is clearly one that I thought was very abusive and exploitative of people. Somebody was, you know, laughing all the way to the bank to the tune of six million bucks so that they can continue to get rich off running a private prison."
The California Welfare Exemption is traditionally reserved for legitimate nonprofit, religious, hospital, or scientific organizations that enrich local communities.
Critics argue that allowing the exemption to apply to properties tied to federal immigration enforcement forces local residents to shoulder the financial burden, depriving county public services and school districts of essential funding.
Community members packed into the county board room on Tuesday to voice strong support for the state measure. However, the foundation's leadership strongly defended the tax structure, denying that the arrangement constitutes a loophole.
Tim Kelley, founder of the Brawley Community Foundation, stated that the organization does pay taxes on the property, and that the exemption only covers the building itself. He maintained that the facility's revenue is heavily reinvested into the county.
"So where's all the money go? The money goes to the taxes, it goes to pay the accountants, to pay the attorneys," Kelley said. "It goes to pay the electricity bill. It pays the water and the sewer in the county, which is the number one user of water and power at the Gateway Center."
According to Kelley, the Calexico facility grosses $40 million annually and supports 250 local jobs. He cautioned that the state bill politicizes local livelihoods and threatens economic development in a region with historically high unemployment.
"Whether you agree or disagree, or your side of ICE or not, it doesn't matter...this is a law," Kelley warned. "And if we continue to go down this path of trying to push business away, then we're going to see which direction we're going."
Because SB 420 is not retroactive, the Brawley Community Foundation will legally keep the $6 million it saved in property taxes since 2016.
Imperial County cannot legally force the organization to repay that past revenue. If enacted, the law would simply compel the facility to begin paying its standard property taxes from the date of enactment onward.
The bill has already cleared the State Senate and is currently advancing through the State Assembly tracking process.
Assembly lawmakers face a final voting deadline of August 31 to review and pass the legislation.
