The proposed bill, known as the Knowledge, Accountability, and Rights in Incarceration Markets Act (KARIM Act), aims to impose various taxes and fees on operators of private prisons in New Jersey to address the social costs associated with incarceration. Specifically, private prison operators that have contracts with public entities for correctional services will be required to pay a fee equal to eight percent of the contract's value. This fee will contribute to the Detention and Deportation Defense Initiative Support Fund, which is dedicated to providing legal services through accredited institutions of higher education. Additionally, a monthly fee of $15 per inmate will be charged for each day an inmate is detained, with revenues directed to the Private Prison Societal Rehabilitation Support Fund to support community-based programs.

Furthermore, the bill introduces a private prison surtax of three percent on the allocated taxable net income of corporate operators of private prisons, which will be assessed in addition to existing corporate taxes. The revenues from this surtax will also be credited to the Private Prison Societal Rehabilitation Support Fund, with specific allocations of one percent each to support programs at the state, county, and municipal levels where the private correctional facilities are located. The bill mandates that the Director of the Division of Taxation adopt necessary regulations for implementation and is set to take effect immediately for taxable years beginning after its enactment.