This bill proposes the introduction of a tax on the gross revenues of private detention facilities in Minnesota, codified under a new section in Minnesota Statutes, chapter 295. The tax will be set at 50 percent of the gross revenues received by these facilities after December 31, 2026. The bill defines key terms such as "detention facility," "gross revenues," and "private detention facility," clarifying that the latter refers to facilities operated by private entities under government contracts, excluding certain residential facilities.

Additionally, the bill outlines provisions for tax credits for private detention facilities that have already paid taxes to other jurisdictions on the same gross revenues. It establishes administrative guidelines for the tax, including audit and enforcement procedures, and mandates that facilities report and remit the tax using the same filing cycle as other taxes under chapter 297A. All revenues collected from this tax, including penalties and interest, will be deposited into the general fund. The provisions of this bill will take effect the day after final enactment.