Overview
Wage Garnishment Workgroup
During the 2025 Session, House Bill 1979 was introduced, which would have removed the exclusion for state tax debt from limitations on the total amount of wages that may be garnished per pay period. As a result, state tax debts under this bill would have become subject to the following two restrictions regarding the maximum amount of disposable earnings for any workweek that the Department may garnish:
- twenty-five percent of their disposable earnings for that week; or
- the amount by which their disposable earnings for that week exceed 40 times the greater of:
- the federal minimum hourly wage or
- the Virginia minimum hourly wage.
As the Virginia minimum hourly wage is currently higher than the federal, the Virginia minimum wage would have been applied in computing the restriction above. The Senate Committee on Finance and Appropriations passed by the bill indefinitely but sent a letter to Virginia Tax requesting this issue be studied. A report on this issue must be submitted to the Chairs of the House Finance, House Appropriations and Senate Finance and Appropriations Committees by November 1, 2025.
Currently Not Collectible (CNC) Workgroup
During the 2025 Session, House Bill 2549 was introduced, which would have required Virginia Tax to establish a program through which taxpayers may apply for currently not collectible (“CNC”) status. The Senate Committee on Finance and Appropriations passed by the bill indefinitely but sent a letter to Virginia Tax requesting a study of this issue. A report on this issue must be submitted to the Chairs of the House Finance, House Appropriations and Senate Finance and Appropriations Committees by November 1, 2025.