HB 5150 Summary

• Repeals prior procedures allowing municipalities to assess judgments against them directly on tax rolls and replaces with a court-ordered payment system from tax revenues.

• Requires judgment plaintiffs to move the court for an order directing local tax collecting units to pay judgments from ad valorem property taxes, with courts retaining discretion over payment amounts and schedules.

• Court orders must specify the payee, total amount (which may be less than the full judgment), expiration date, and payment schedule aligned with property tax collection under MCL 211.43 or an alternative court-ordered schedule.

• Prohibits municipalities from issuing certificates of indebtedness or bonds to pay judgments if such issuance would increase total municipal taxes unless approved by voter referendum; also prohibits bonds for judgments recovering illegally imposed taxes, fees, or assessments.

• Takes effect 90 days after enactment and is contingent on House Bill 5151 also being enacted into law.