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Subcommittee unanimously reports HB 488 to limit garnishments, codify non-collectible recognition and delay enactment for implementation
Summary
HB 488 with substitute would codify Tax's voluntary limit of 25% on garnishments of disposable earnings, protect very low-wage earners, and recognize federal 'currently non-collectible' status for state debts; the subcommittee reported the bill with substitute unanimously (chair announced report 10 to 0).
The bill sponsor (Chair/Delegate presenting HB 488) described a substitute that (1) delays enactment until July 1, 2027, to allow the Department of Taxation time to implement technical changes and (2) codifies two administrative practices: recognizing federal currently non-collectible status for state debts and limiting garnishments to 25% of disposable earnings. The substitute also creates stronger protections for very low-wage earners (defined in the substitute as those earning no more than 40 times the minimum wage, about $511 per week).
Joanna Darkus of the Virginia Poverty Law Center testified in support, saying the change would allow people to prioritize expenses and keep basic needs while the state recovers owed taxes. Committee members moved, seconded, and voted to report HB 488 with substitute; the clerk closed the roll and the chair announced the bill reported unanimously (chair announced "HB 48 with substitute reports ... to vote for 10 years, 0 nays" and earlier stated "reports, unanimously to vote for 10 years, 0 nays" — understood in context as 10 to 0).
