JUDGMENT AGAINST GOV'T ENTITY S.B. 615:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 615 (as introduced 11-10-15)
Sponsor: Senator Wayne Schmidt
CONTENT
The bill would amend the Revised Judicature Act to prohibit a judgement against a governmental entity that was assessed and collected as a tax from being attributed or transmitted to, or retained or captured by, any other governmental entity for any other purpose.
Section 6093 of the Act establishes the method of recovery of a judgment against a city, village, township, or county, and Section 6094 establishes the method of recovery of a judgment against a school district or intermediate school district. Those sections require the appropriate assessing officer to assess the amount of the judgment upon the taxable property of the municipality or district.
The bill specifies that a judgment entered against a governmental entity under Section 6093 or 6094 that was assessed and collected as a tax under that section, and any specific local tax attributable to the judgment, could not be attributed or transmitted to or retained or captured by any other governmental entity for any other purpose.
The bill would apply retroactively to all judgments entered after May 6, 2015.
Proposed MCL 600.6094a Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill would have no net impact on local revenue, but would in some local circumstances reallocate revenue captured under a tax increment financing plan from the tax increment financing authority to a municipality levying a judgment levy.
Fiscal Analyst: Elizabeth Pratt
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.