California lawmakers are advancing a bill that would end a charity tax break claimed by the nonprofit owner of an Imperial County ICE detention facility. The move follows reporting that found the arrangement let the facility’s operator avoid millions of dollars in property taxes over the past decade.
Nonprofit landlord has held tax exemption since 2016
The Imperial Regional Detention Facility is owned by the Brawley Community Foundation, a local nonprofit, though it is operated for profit by Management and Training Corporation. State and county officials have granted the foundation a welfare exemption since 2016, and the arrangement has let it avoid paying at least $6 million in property taxes.
State Sen. Steve Padilla introduced language amending Senate Bill 420 to close the exemption for groups tied to for-profit detention operations. He argued that immigration detention should not qualify for charitable treatment under state law.
“Nothing about this is charitable.”
Padilla represents Imperial County and said the tax break has effectively shifted costs onto local taxpayers. According to legislative records, the amended bill would add new language to the California Revenue and Taxation Code specifically excluding for-profit detention operations from the exemption.
Foundation defends its role despite charity tax break criticism
Timothy Kelley, a founding board member of the Brawley Community Foundation, has argued that the facility remains one of the largest employers in Imperial County. He said the foundation has already paid roughly $2.3 million in property taxes on the land since the facility opened in 2014.
“I am trying to retain them as they have been a great partner.”
Kelley said the private operator could relocate to Arizona or New Mexico if the tax structure changes. He also argued that keeping the facility local allows detainees to remain closer to their families rather than being transferred out of state.
For nonprofit leaders navigating exemption rules, charities must meet strict state filing requirements before qualifying for tax relief. Verifying an organization’s registration and disclosures remains one of the clearest ways donors and regulators can assess whether a nonprofit is operating within its charitable mission.
The facility has also faced scrutiny over detainee treatment, including allegations of inadequate medical care and the use of solitary confinement. Two detainees have died at the facility since 2025 after experiencing medical emergencies, according to state records.
California Attorney General Rob Bonta’s office has been examining the foundation’s ownership structure, though it remains unclear whether a formal investigation has opened. SB 420 has drawn support from more than a dozen groups, including the Imperial County Board of Supervisors, and is expected to face further hearings in the coming months.