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VA SB597

VA SB597
Wage garnishments; treasurers' liens for unpaid taxes and charges.


summary

Introduced
01/14/2026
In Committee
02/18/2026
Crossed Over
02/02/2026
Passed
02/24/2026
Dead

Introduced Session

2026 Regular Regular Session

Bill 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.

AI Summary

This bill modifies existing laws regarding wage garnishments and treasurer's liens for unpaid taxes and charges. Primarily, it limits a treasurer's lien on wages or salary to 25 percent of a delinquent taxpayer's disposable earnings (earnings after legally required deductions) per pay period. However, this 25 percent limit does not apply if the treasurer determines the taxpayer's adjusted gross income is more than 250 percent of the federal poverty guideline for their household size, or if the treasurer has clear evidence that the taxpayer is fleeing the jurisdiction or trying to hide assets to avoid paying taxes. It also clarifies that this limitation does not apply to funds the taxpayer has collected and is holding to pay to the local government. The bill also makes technical amendments to various sections of the Code of Virginia to reflect these changes and ensure consistency in terminology.

Committee Categories

Justice

Sponsors (1)

Last Action

Fiscal Impact statement From TAX (2/26/2026 3:41 pm) (on 02/26/2026)

bill text


bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB597
Fiscal Note/Analysis - Fiscal Impact statement From TAX (2/26/2026 3:41 pm) https://lis.blob.core.windows.net/files/1184733.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB597/text/SB597ER
Fiscal Note/Analysis - Fiscal Impact statement From TAX (2/18/2026 7:30 am) https://lis.blob.core.windows.net/files/1169107.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB597/text/SB597S1
BillText https://lis.virginia.gov/bill-details/20261/SB597/text/SB597SC1
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/20/2026 11:33 pm) https://lis.blob.core.windows.net/files/1092500.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB597/text/SB597
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