A BILL to amend and reenact § 58.1-1805 of the Code of Virginia, relating to Department of Taxation; memorandum of lien for collection of taxes; time to process requested information.
HB1080 amends Virginia’s tax lien statute governing memoranda of lien filed by the Department of Taxation for unpaid taxes, fees, penalties, and interest. The bill keeps the existing authority for the Tax Commissioner to file a lien after taxes remain unpaid for 30 days, but adds new timing restrictions before a lien may be filed. Specifically, the Department would have to wait at least 60 days after requesting information from the taxpayer that could resolve the collection issue, fully process any information the taxpayer submits, and provide at least 10 days’ prior notice of intent to file a lien, unless the Tax Commissioner determines that advance notice would jeopardize collection.
The bill also preserves and clarifies existing lien and collection procedures, including the effect of the memorandum as a judgment, the ability to file in jurisdictions where the taxpayer owns real estate, and the taxpayer’s ability to appeal an erroneous lien filing. It retains provisions allowing the Tax Commissioner, after filing a lien and under regulations, to padlock delinquent business premises and post distraint notices, and it keeps the related misdemeanor penalty for unauthorized entry. The bill adds a specific deadline for the Tax Commissioner to decide appeals of erroneous lien filings within 14 days and to issue a release within 7 days if the lien was filed in error.
In practical terms, the bill would impose additional procedural safeguards and processing time before the Department of Taxation can use lien enforcement against delinquent taxpayers. It would affect the Department’s collection practices, taxpayers facing delinquent assessments, and businesses subject to distraint or padlocking measures. The bill does not eliminate lien authority; instead, it conditions and delays its use to allow more time for taxpayer-provided information to be reviewed.
The general sentiment reflected by the available record is limited, because there were no committee transcripts or recorded votes provided. The bill was referred to the House Committee on Finance and was left in Finance, suggesting it did not advance, but the available materials do not show explicit support or opposition. Based on the text alone, the measure appears aimed at balancing tax collection enforcement with taxpayer process protections.
The main point of contention likely concerns whether the added waiting periods and notice requirements would improve fairness and reduce premature liens, or whether they would hinder timely tax collection and increase the risk that revenue becomes harder to recover. Another possible area of concern is the continued authorization for padlocking delinquent businesses, which is a strong enforcement tool and may draw scrutiny even though the bill adds procedural limits around its use.
HB1080 would amend § 58.1-1805 of the Code of Virginia to add mandatory pre-lien processing and notice requirements for Department of Taxation collection actions. It would require the Department to wait 60 days after requesting taxpayer information, fully process any submitted information, and provide 10 days’ notice before filing a memorandum of lien, unless collection would be jeopardized. It also establishes expedited deadlines for the Tax Commissioner to resolve appeals of erroneous lien filings and to release liens found to be filed in error. The bill would affect the Department’s lien and distraint procedures, delinquent taxpayers, and businesses subject to tax enforcement actions.
No committee transcript or vote record was provided, so there is no direct evidence of debate or recorded support/opposition. The bill’s text suggests a policy approach that is protective of taxpayer due process while preserving the Commonwealth’s tax collection tools. Its referral to Finance and subsequent being left in Finance indicates it did not advance, but the available record does not explain why.
The likely contention is between taxpayer protections and collection efficiency. Supporters would likely favor the added 60-day processing period, advance notice, and fast appeal/release deadlines as safeguards against premature or erroneous liens. Opponents would likely argue that these requirements could delay enforcement, reduce the Department’s leverage, and make it harder to collect delinquent taxes. The continued authority to padlock delinquent businesses may also be controversial, even though the bill limits its use through regulations.