Bill > HB1979

This bill modifies Virginia's wage garnishment laws by removing the previous exclusion for state tax debt from limitations on the total amount of wages that may be garnished per pay period. Specifically, the legislation amends Section 34-29 of the Code of Virginia to eliminate the special treatment for state tax debts, which previously were exempt from the standard garnishment restrictions. Under the current law, certain types of debts like federal tax debts, child support, and bankruptcy orders could be garnished beyond the typical 25% limit. The bill now explicitly states that state tax debts are subject to the same 25% maximum garnishment limit as other types of debts. This means that for state tax debt collection, employers can only withhold up to 25% of an employee's disposable earnings in any given workweek. The changes will take effect for garnishments issued on or after January 1, 2026, giving employers and tax authorities time to prepare for the new garnishment rules. The bill aims to standardize wage garnishment procedures and provide more consistent protections for workers' earnings across different types of debt collection.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB1979