VirginiaSB5972026 Regular SessionSenateWALLET

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

Sponsored By: Lashrecse D. Aird (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 HB 1100.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Unpaid local bills trigger continuing liens

Local treasurers and tax collectors can use liens to collect taxes or other charges more than 30 days late. A lien reaches money someone else owes the taxpayer or property someone else holds for them. Once delivered, it immediately covers current and later debts or property without another notice or legal process. It collects the unpaid amount, interest, and penalties, and continues until the obligation is fully paid. Payments under the lien count toward the tax debt. The person or organization served receives a $20 fee for each lien, paid from money subject to it.

State workers face repayment with safeguards

State officers and employees must repay state money they were not entitled to receive. Recipients avoid repayment if they prove they were not at fault, lacked actual knowledge, and could not reasonably detect the error. Employees who approve improper payments also owe repayment if they knew, or reasonably should have known, they were improper. State employers must promptly correct payroll errors and adjust future payments. Payroll deductions are allowed for undisputed liability, court-established liability, or good-faith errors that withheld too little for benefits. They are also allowed for good-faith wage, salary, or expense-reimbursement overpayments of less than $500. These deductions cannot exceed 25% of disposable earnings per pay period—earnings left after legally required deductions. The Attorney General can pursue recovery when an employee leaves state service or administrative recovery is unavailable. Good-faith payments to Virginia Retirement System beneficiaries are excluded.

Workers get wage limits with exceptions

Treasurers generally cannot take more than 25% of disposable earnings each pay period for delinquent local bills. Disposable earnings are earnings left after legally required deductions. The cap does not apply when the latest reported adjusted gross income exceeds 250% of the household's federal poverty guideline. It also does not apply to money collected and held in trust for a local government. Courts can lift the cap upon clear and convincing evidence of flight risk or improper asset disposal to hinder collection. Taxpayers can submit evidence that current-year adjusted gross income is at or below the 250% threshold. Once verified, the treasurer must promptly notify the lien recipient to apply the 25% cap until the debt is paid. A separate weekly limit protects earnings equal to 40 times Virginia's minimum hourly wage when the earnings are payable. Employers cannot fire a worker solely because of a lien for one debt. State officers and employees are subject to garnishment rules; treasurer's wage liens also reach state employees, generally excluding state officers.

Sponsors & Cosponsors

Sponsor

  • Lashrecse D. Aird

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 305 • No: 41

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 39 • No: 0

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 76 • No: 20

House vote • 2/23/2026

Passed House

Yes: 83 • No: 14

House vote • 2/18/2026

Reported from Courts of Justice

Yes: 15 • No: 7

Senate vote • 2/3/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote • 2/2/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 1/30/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 38 • No: 0

Senate vote • 1/30/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 1/28/2026

Reported from General Laws and Technology with substitute

Yes: 15 • No: 0

Actions Timeline

  1. House concurred in Governor's recommendation (76-Y 20-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (39-Y 0-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1019)

    4/22/2026Governor
  4. Reenrolled bill text (SB597ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 1019 (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 Senate

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

    3/10/2026Governor
  12. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  13. Fiscal Impact statement From TAX (2/26/2026 3:41 pm)

    2/26/2026Senate
  14. Bill text as passed Senate and House (SB597ER)

    2/24/2026Senate
  15. Enrolled

    2/24/2026Senate
  16. Signed by President

    2/24/2026Senate
  17. Signed by Speaker

    2/24/2026House
  18. Passed House (83-Y 14-N 0-A)

    2/23/2026House
  19. Read third time

    2/23/2026House
  20. Read second time

    2/20/2026House
  21. Reported from Courts of Justice (15-Y 7-N)

    2/18/2026House
  22. Fiscal Impact statement From TAX (2/18/2026 7:30 am)

    2/18/2026Senate
  23. Referred to Committee for Courts of Justice

    2/9/2026House
  24. Read first time

    2/9/2026House
  25. Placed on Calendar

    2/9/2026House

Bill Text

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