summary
Introduced
01/12/2026
01/12/2026
In Committee
02/04/2026
02/04/2026
Crossed Over
02/02/2026
02/02/2026
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Wage garnishment; state tax debt. Provides that the maximum part of the aggregate disposable earnings of an individual for any workweek that is subject to garnishment to collect delinquent taxes and charges owed to the state government shall not exceed the lesser of (i) 25 percent of such individual's disposable earnings for that week or (ii) the amount by which such individual's disposable earnings exceed 40 times the federal or Virginia minimum wage, whichever is greater. The bill also directs the Department of Taxation to recognize Currently Not Collectible status granted by the Internal Revenue Service and to offer taxpayers with such status a similar Virginia status with comparable protections from collection activities. The bill contains technical amendments and has a delayed effective date of July 1, 2027.
AI Summary
This bill modifies existing Virginia law to establish new limits on wage garnishment for state tax debts, ensuring that the maximum amount of an individual's disposable earnings (income after legally required deductions) that can be garnished for delinquent state taxes is the lesser of 25% of their weekly disposable earnings or the amount by which their disposable earnings exceed 40 times the greater of the federal or Virginia minimum wage. This change aims to provide greater protection for individuals with lower incomes, as the current law allows for up to 100% of earnings to be garnished for state taxes in some circumstances, and the bill also makes technical amendments to various sections of the Code of Virginia related to debt collection and tax administration, including adding a provision for the Department of Taxation to offer a "Currently Not Collectible" (CNC) status similar to the federal IRS program for individual income taxpayers with federal CNC status, providing comparable protections from collection activities.
Committee Categories
Budget and Finance
Sponsors (15)
Phil Hernandez (D)*,
Elizabeth Bennett-Parker (D),
Katrina Callsen (D),
Nadarius Clark (D),
Laura Jane Cohen (D),
Debra Gardner (D),
Jackie Glass (D),
Karen Keys-Gamarra (D),
Destiny LeVere Bolling (D),
Michelle Lopes-Maldonado (D),
Adele McClure (D),
Marcia Price (D),
Atoosa Reaser (D),
Briana Sewell (D),
Irene Shin (D),
Last Action
Fiscal Impact statement From TAX (2/21/2026 3:18 pm) (on 02/21/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/HB488 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (2/21/2026 3:18 pm) | https://lis.blob.core.windows.net/files/1171754.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB488/text/HB488H1 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB488/text/HB488HC2 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB488/text/HB488HC1 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/25/2026 3:47 pm) | https://lis.blob.core.windows.net/files/1096339.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB488/text/HB488 |
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