News Articles
This site contains over 2,000 news articles, legal briefs and publications related to for-profit companies that provide correctional services. Most of the content under the "Articles" tab below is from our Prison Legal News site. PLN, a monthly print publication, has been reporting on criminal justice-related issues, including prison privatization, since 1990. If you are seeking pleadings or court rulings in lawsuits and other legal proceedings involving private prison companies, search under the "Legal Briefs" tab. For reports, audits and other publications related to the private prison industry, search using the "Publications" tab.
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CCA Denied Over $2 Million In Tax Deductions
CCA contracts to house prisoners for the State of New Mexico and filed a claim with the Taxation and Revenue Department for a refund of over $2 million paid pursuant to the Gross Receipts Act (Act). The Act imposes a five percent tax on receipts from business activities and also allows any receipts for real property lease or sales to be deducted. The deductions were denied and the district court upheld the denial ruling that prisoner housing contracts were not real property leases. CCA appealed.
On appeal, the Court of Appeals of the State of New Mexico held that due to the "per diem rate" payment calculation for housing prisoners, "the governmental entities did not pay a fixed amount in exchange for the physical guarantee of real property" and hence "there is no lease for real property" under the Act. See: Corrections Corporation of America v. State of New Mexico. 170 P.3d 1017 (N.M. App. 2007).
Related legal case
Corrections Corporation of America v. State of New Mexico
| Year | 2007 |
|---|---|
| Cite | 170 P.3d 1017 (N.M. App. 2007) |
| Level | State Court of Appeals |
| Injunction Status | N/A |
