Virginia Law

A. For the purposes of this section:

"Disposable earnings" means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld.

"Earnings" means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, payments to an independent contractor, or otherwise, and whether paid directly to the individual or deposited with another entity or person on behalf of and traceable to the individual, and includes periodic payments pursuant to a pension or retirement program.

"Poverty guidelines" means the poverty guidelines for the 48 contiguous states and the District of Columbia updated annually in the Federal Register by the U.S. Department of Health and Human Services under the authority of § 673(2) of the Omnibus Budget Reconciliation Act of 1981.

B. The treasurer or other tax collector of any county, city, or town may apply in writing a treasurer's lien to any person indebted to or having in his hands estate of a taxpayer or other debtor for payment of taxes, or other charges collected by the treasurer, more than 30 days delinquent out of such debt or estate. Immediately upon delivery of a treasurer's lien to a third party, such lien shall constitute a continuing lien upon the debt or estate that is in the hands of the third party recipient, or may come into the hands of the third party recipient, up to the total amount of the delinquent taxes or other charges plus accrued interest and penalties, without the requirement for further notice or process, until the delinquent obligations have been satisfied in full.

If the subject of a treasurer's lien is wages or salary due or to become due in the future to the delinquent taxpayer, such lien shall be for no more than 25 percent of the delinquent taxpayer's disposable earnings for each pay period during the pendency of the lien, except that the 25 percent limitation shall not apply:

1. If the lien issuer determines, based upon tax return information maintained by the Tax Commissioner and accessed in accordance with the requirements of § 58.1-3, that the adjusted gross income reported on the most recent income tax return for the delinquent taxpayer exceeds 250 percent of the poverty guideline amount corresponding to a household of an equal number of persons as listed in the poverty guidelines published during the year in which the lien is issued;

2. If a court of appropriate jurisdiction determines, by clear and convincing evidence, that the delinquent taxpayer may flee or attempt to flee the jurisdiction or is improperly disposing of assets with the intent to hinder or delay the collection of the delinquent obligations; or

3. To any portion of the delinquent obligations that were collected and held in trust by the delinquent taxpayer to remit to the appropriate local governing authority, including county food and beverage taxes levied pursuant to § 58.1-3833, admission taxes levied pursuant to § 58.1-3818, and transient occupancy taxes levied pursuant to § 58.1-3819.

C. A delinquent taxpayer may present information to the treasurer to establish that such taxpayer's present earnings, current household size, or other circumstances are likely to result in an adjusted gross income for that present tax year that is equal to or less than 250 percent of the poverty guideline amount corresponding to a household of an equal number of persons as listed in the poverty guidelines published during the year in which the lien is issued. Upon verification of the information presented, the treasurer shall promptly advise the recipient of the treasurer's lien that the lien is thereafter limited to not more than 25 percent of the delinquent taxpayer's disposable earnings for each pay period until the lien is satisfied.

D. Payment by the recipient of a treasurer's lien of such taxes, penalties and interest, or other charges either in whole or in part, shall entitle the recipient to a credit against such debt or estate in the amount of the total payment made. For each treasurer's lien served, the recipient of the lien shall be entitled to collect and retain, from the amounts subject to the lien, a fee of twenty dollars which shall constitute a charge or credit against the debt to or estate of the taxpayer or other debtor. The treasurer or collector shall send a copy of the treasurer's lien to the taxpayer or other debtor, with a notice informing him of the remedies provided in this chapter.

E. If the recipient of a treasurer's lien does not pay so much as ought to be recovered out of the debt or estate, the treasurer or collector shall procure a summons directing the recipient of the lien to appear before the appropriate court, where proper payment may be enforced. Any person so summoned shall have the same rights of removal and appeal as are provided by law for the enforcement of demands between individuals. For purposes of this section, the term "person" shall include individuals, corporations, partnerships, institutions, and other such entities, as well as the Commonwealth and its agencies and political subdivisions. However, in no event shall the Commonwealth, its agencies, or its political subdivisions incur any liability for the failure to pay a treasurer's lien pursuant to this section.

F. 1. Unless otherwise exempted, the wages and salaries of all employees of this Commonwealth, other than state officers, shall be subject to this section. Whenever the salary or wages of such employees as above mentioned shall be so attached, the treasurer's lien shall be mailed to the debtor and to the officer or supervisor who is head of the department, agency, or institution where the employee is employed, or other officer through whom the debtor's salary or wages is paid, provided that process shall not be served upon the State Treasurer or the State Comptroller except as to employees of their respective departments, and upon such service the officer or supervisor shall, on or before the return day of the lien, transmit to the treasurer or other tax collector issuing the lien a certificate showing the amount due from the Commonwealth to such debtor, up to the return day of the lien, which amount the officer or supervisor shall hold subject to further instruction from the treasurer or other tax collector. However, in no case shall the officer or supervisor hold more than the sum of taxes, penalties and interest, and other charges stated in the treasurer's lien. Such certificate shall be evidence of all facts therein stated, unless a court of appropriate jurisdiction directs that the deposition of the officer or supervisor, or such other officer through whom the debtor's salary or wages be paid, be taken, in which event the deposition of the officer or supervisor shall be taken in his office and returned to the clerk of the court in which the summons is, just as other depositions are returned, and in no such case shall the officer or supervisor be required to leave his office to testify. In all proceedings under this section, the amount found to be due the debtor by the Commonwealth shall be paid as directed by the court.

2. The maximum part of the aggregate disposable earnings of an individual for any workweek that is subjected to lien shall not exceed the amount by which his disposable earnings for that week exceed 40 times the Virginia minimum hourly wage prescribed by § 40.1-28.10 in effect at the time earnings are payable. No employer may discharge any employee by reason of the fact that his earnings have been subjected to lien for any one indebtedness.

G. No court of the Commonwealth and no state agency or officer may make, execute, or enforce any order or process in violation of this section.

Code 1950, § 58-1010; 1960, c. 573; 1983, c. 481; 1984, c. 675; 1991, c. 445; 1994, c. 153; 1997, c. 496; 2002, c. 64; 2026, cc. 1019, 1090.