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VA HB488

Bill

Status

Enrolled

3/11/2026

Primary Sponsor

Phil Hernandez

Click for details

Origin

House of Delegates

2026 Regular Regular Session

AI Summary

  • Removes state tax debt from the list of exceptions to wage garnishment limits, meaning state tax debts will now be subject to the standard 25% cap on disposable earnings that can be garnished
  • Deletes the checkbox option for "state taxes, 100%" garnishment from the garnishment summons form, while federal tax debts remain exempt from garnishment limits
  • Requires the Virginia Department of Taxation to recognize "Currently Not Collectible" (CNC) status granted by the IRS and offer Virginia taxpayers with federal CNC status comparable protections from state collection activities
  • Amends six sections of the Virginia Code related to wage garnishment, exemptions, and tax debt collection procedures
  • Takes effect on July 1, 2027

Legislative Description

Wage garnishment; state tax debt.

Last Action

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

3/14/2026

Committee Referrals

Finance and Appropriations2/4/2026
Finance1/12/2026

Full Bill Text

No bill text available