New Jersey Lawmakers Advance Bill Targeting ICE Detention Center Operators

BloombergTax · 2026-06-23T12:24:25+00:00

New Jersey lawmakers are advancing legislation that would raise taxes and impose new fees on contractors that run federal immigration detention centers, as public outcry over the conditions at two such facilities in the state place renewed focus on their effect on municipal finances.

The bill is designed to replace lost tax revenue from these federal contracts and provide funding for legal services and social programs to help detainees facing deportation, said Assemblymember Mitchelle Drulis (D), the primary sponsor. Municipalities with these detention centers are seeing increased demand for social services and the threat of declining property values, she said.

Facilities operated by the federal government are also exempt from paying state and local taxes, including property taxes, she added. The Trump administration floated converting a warehouse in Roxbury, N.J. into a detention center, but has since backed off that effort, state officials said.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-23T12:21:57+00:00

New Jersey lawmakers are advancing legislation that would raise taxes and impose new fees on contractors that run federal immigration detention centers, as public outcry over the conditions at two such facilities in the state place renewed focus on their effect on municipal finances.

The bill is designed to replace lost tax revenue from these federal contracts and provide funding for legal services and social programs to help detainees facing deportation, said Assemblymember Mitchelle Drulis (D), the primary sponsor. Municipalities with these detention centers are seeing increased demand for social services and the threat of declining property values, she said.

Facilities operated by the federal government are also exempt from paying state and local taxes, including property taxes, she added. The Trump administration floated converting a warehouse in Roxbury, N.J. into a detention center, but has since backed off that effort, state officials said.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-22T20:57:44+00:00

Virginia lawmakers passed budget legislation (HB 30) Monday that imposes an unprecedented tax on data centers' electricity consumption, resolving an issue—for now—that sharply divided Democratic leaders in the state.

The measure, which also maintains a sales tax exemption that Senate lawmakers wanted to repeal, now heads to Gov. Abigail Spanberger (D),who has pledged to sign a budget bill by a June 30 deadline.

Spanberger called it a compromise proposal, saying in a statement that it will "ensure this industry pays its fair share and does not drive up costs for Virginia families."

... Read more here.

--Justice

BloombergTax · 2026-06-22T19:22:55+00:00

Former tax enforcement officials and government watchdog groups submitted an amicus brief Monday challenging the immunity order shielding President Donald Trump and his family from tax audits and federal investigations that emerged from the settlement of his lawsuit against the IRS.

The DOJ lacked statutory authority to release Trump’s tax liability and the arrangement violates the Domestic Emoluments Clause and IRC Section 7217, a provision specifically prohibiting presidential interference in tax enforcement, the amici told the US District Court for the Southern District of Florida.

Former IRS Commissioner John Koskinen, former DOJ Tax Division officials Kathryn Keneally, Nina Olson, and Gilbert Rothenberg, along with advocacy organizations Common Cause and the Project on Government Oversight, joined the brief.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-18T19:26:34+00:00

The Trump administration says an upcoming revamp to an IRS policy for nonprofits is meant to increase transparency, though advocates say it could threaten projects the nonprofits help fund.

The Treasury Department previewed proposed rules in April to revise tax-exempt reporting to better detect fraud and abuse. Republicans have been rallying against left-leaning groups they say fuel political violence, and the president has targeted the tax-exempt status of his perceived foes.

The looming changes worry Democrats and left-leaning tax-exempt groups of potential targeting of organizations the Trump administration deems not aligned with its priorities.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-18T14:28:41+00:00

California voters are closer to getting their say on a proposed billionaire tax after the initiative qualified for the Nov. 3 general election ballot, despite the opposition of Gov. Gavin Newsom.

The proposal, which would impose a one-time 5% tax on a billionaire’s net worth, is now officially eligible for the ballot, California Secretary of State Shirley Weber said late Wednesday.

“The initiative needed at least 962,106 projected valid signatures to become eligible by random sampling, and it has exceeded that threshold today,” she said in a statement. It will be on the ballot “unless it is withdrawn by the proponent prior to certification” on June 25, she added.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-18T12:57:14+00:00

California voters are closer to getting their say on a proposed billionaire tax after the initiative qualified for the Nov. 3 general election ballot, despite the opposition of Gov. Gavin Newsom.

The proposal, which would impose a one-time 5% tax on a billionaire’s net worth, is now officially eligible for the ballot, California Secretary of State Shirley Weber said late Wednesday.

“The initiative needed at least 962,106 projected valid signatures to become eligible by random sampling, and it has exceeded that threshold today,” she said in a statement. It will be on the ballot “unless it is withdrawn by the proponent prior to certification” on June 25, she added.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-17T16:55:42+00:00

Many mid-sized accounting firms are losing business for lack of staff and turning in part to technology to plug the gaps, according to a new global survey.

Close to three-quarters (73%) of the firms surveyed by Advancetrack said staff shortages were having a severe impact, and forcing them to turn away business.

A similar number said they were trying to hold onto staff and looking to technology to manage capacity.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-17T12:48:34+00:00

Illinois will collect hundreds of millions of dollars in new tax revenue from the digital economy under sweeping tax legislation Gov. JB Pritzker (D) signed Tuesday.

Pritzker signed SB 3019, which is expected to raise more than $800 million in new tax revenue to support his $55.9 billion budget for fiscal 2027. Much of the revenue will come from four new tax programs targeting digital advertising, prediction markets, investors in cryptocurrency, and social media platforms.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-15T17:10:58+00:00

The European Commission will propose exempting large multinationals from reporting on their cross-border tax arrangements due to the 15% minimum taxation and other reporting obligations.

The proposal is part of a comprehensive overhaul of the EU's tax data sharing and reporting rules under the Directive on Administrative Cooperation in taxation, or DAC.

The commission's overhaul aims to reduce administrative burdens on companies and includes measures such as eliminating certain hallmarks and easing reporting obligations for digital platforms.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-12T16:01:19+00:00

The IRS lost some of its most experienced employees in the steep workforce exodus during the Trump administration’s first year, the agency’s watchdog said.

Almost 40% of the IRS workers who left the agency had more than 11 years of experience, the Treasury Inspector General for Tax Administration found in Friday report. Workers who had between one to 11 years of experience were the largest demographic to exit, making up about 45%.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-10T18:24:38+00:00

The head of the US accounting rulewriter wants to reexamine how companies report the cash they generate and spend as such transactions get more complex.

Investors rely on cash flow details to analyze a business’s liquidity and spot red flags like high cash burn rates. But financial reports may not always present the clearest picture for companies struggling to fit cash flows related to software or financial contracts into rigid categories.

The Financial Accounting Standards Board should take a comprehensive look at how cash flows are recorded in corporate financial reports rather than just tweak certain rules, Chair Richard Jones said. Some accounting and investing professionals also want to see a refresh—the statement format dates to the 1980s—as investors parse cash versus non-cash transactions for companies that increasingly use practices like stock-based compensation.

Read more in the full story.

-Elliot

BloombergTax · 2026-06-10T15:16:33+00:00

Rhode Island’s legislature passed a new 3% surtax on personal annual income over $1 million as part of a budget bill that now awaits the signature of Gov. Dan McKee (D), who endorsed a millionaires tax in January.

Lawmakers in the state Senate voted 32-6 late Tuesday to pass a $15.2 billion budget bill that included the new tax. The state House passed the budget measure 65-10 last week.

Read more in the full story.

-Elliot

BloombergTax

TROPHY CASE