VirginiaHB11002026 Regular SessionHouseWALLET

Wage garnishments; treasurers' liens for unpaid taxes and charges.

Sponsored By: Phil M. Hernandez (Democratic)

Signed by Governor

Summary

Wage garnishments; treasurers' liens for unpaid taxes and charges. Limits a treasurer's lien issued with respect to wages or salary to 25 percent of the delinquent taxpayer's disposable earnings in a single pay period. The 25 percent limitation shall not apply (i) if the lien issuer determines that the adjusted gross income of the delinquent taxpayer exceeds 250 percent of the poverty guideline amount adjusted for household size; (ii) if the treasurer determines, by clear and convincing evidence, that the delinquent taxpayer or the property assessed with such taxes is no longer in the jurisdiction, or the taxpayer is attempting to flee the jurisdiction or is improperly disposing of assets with the intent to hinder or delay the collection of the delinquent taxes; or (iii) to any portion of the delinquent obligation collected by the delinquent taxpayer and held in trust to remit to the local governing authority. This bill is identical to SB 597.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 2 costs, 1 mixed.

Workers gain protection from lien-related firing

Employers cannot fire workers because their earnings are subject to a treasurer’s lien for one debt. This protection applies to a single indebtedness, not an unlimited number of debts.

State workers keep a weekly pay floor

For Commonwealth employees other than state officers, a treasurer’s lien must leave a protected amount of weekly disposable earnings. The lien can reach only earnings above 40 times Virginia’s minimum hourly wage. The calculation uses the minimum wage in effect when the earnings are payable.

Workers get limits on tax liens

Treasurer’s wage liens follow separate lien rules, not Virginia’s garnishment rules, and generally take no more than 25% of disposable earnings per pay period. The cap does not apply when the most recently reported adjusted gross income exceeds 250% of the applicable poverty guideline. Exceptions also cover specified taxes collected and held in trust, or court findings backed by clear and convincing evidence of flight risk or improper asset disposal to delay collection. When the treasurer verifies current-year adjusted gross income at or below 250% of the guideline, the treasurer must promptly tell the lien recipient to apply the cap until payment in full. The poverty guideline is the one published in the year the lien is issued.

More worker and retiree income faces garnishment

Virginia’s garnishment rules cover wages, salaries, commissions, bonuses, and payments to independent contractors. They also cover compensation held by another person or organization when it can be traced to the individual. Periodic pension and retirement payments count as earnings too. These types of income fall within the earnings covered by garnishment rules.

Unpaid tax liens reach later-held property

Virginia tax collectors can issue written liens for taxes or other charges more than 30 days late. Once delivered, the lien reaches debts or property a third party holds or later receives for the taxpayer. It can cover the unpaid amount, accrued interest, and penalties. It continues without further notice or legal steps until the overdue obligations are paid in full.

State overpayment deductions come with limits

Virginia state employers can recover improper payments to officers or employees through payroll deductions. Deductions are allowed when liability is undisputed, a court finds liability, or a covered good-faith error occurred. Covered errors include too little withholding for retirement, health insurance, or another benefit program. They also include good-faith wage, salary, or expense-reimbursement overpayments under $500. Each deduction is capped at 25% of disposable earnings.

Sponsors & Cosponsors

Sponsor

  • Phil M. Hernandez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 393 • No: 77

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 28 • No: 11

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 73 • No: 25

House vote • 3/10/2026

Senate substitute agreed to by House

Yes: 78 • No: 19

Senate vote • 3/9/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/9/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

Senate vote • 3/6/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/6/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 39 • No: 0

Senate vote • 3/4/2026

Reported from General Laws and Technology with substitute

Yes: 15 • No: 0

Senate vote • 2/18/2026

Rereferred from Courts of Justice to General Laws and Technology

Yes: 12 • No: 0

House vote • 2/10/2026

Read third time and passed House

Yes: 85 • No: 13

House vote • 2/4/2026

Reported from Courts of Justice with amendment(s)

Yes: 16 • No: 6

House vote • 2/2/2026

Subcommittee recommends reporting with amendment(s)

Yes: 7 • No: 3

Actions Timeline

  1. Senate concurred in Governor's recommendation (28-Y 11-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (73-Y 25-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1090)

    4/22/2026Governor
  4. Reenrolled bill text (HB1100ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1090 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by House

    4/13/2026Governor
  11. Fiscal Impact statement From TAX (4/1/2026 9:45 am)

    4/1/2026House
  12. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  13. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  14. Signed by Speaker

    3/31/2026House
  15. Bill text as passed House and Senate (HB1100ER)

    3/30/2026House
  16. Enrolled

    3/30/2026House
  17. Signed by President

    3/30/2026Senate
  18. Senate substitute agreed to by House (78-Y 19-N 0-A)

    3/10/2026House
  19. Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

    3/9/2026Senate
  20. Committee substitute agreed to (Voice Vote)

    3/9/2026Senate
  21. Engrossed by Senate - committee substitute

    3/9/2026Senate
  22. Read third time

    3/9/2026Senate
  23. Passed by for the day Block Vote (Voice Vote)

    3/6/2026Senate
  24. Constitutional reading dispensed Block Vote (on 2nd reading) (39-Y 0-N 0-A)

    3/6/2026Senate
  25. Rules suspended

    3/6/2026Senate

Bill Text

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