                                 CODE OF VIRGINIA

TREASURERS MAY DEDUCT ANY TAXES DUE FROM PARTY IN WHOSE FAVOR THE WARRANT IS
DRAWN; COMPACTS (§ 58.1-3133)

A. In the payment of any warrants lawfully drawn, the treasurer paying such
warrants may first deduct all taxes and other charges due from the party in
whose favor the warrant is drawn. If such warrant is insufficient to pay the
entire amount due, then such treasurer shall credit the bill for such taxes or
other charges by the amount of the warrant.

B. The governing bodies of any two or more localities may enter into compacts by
which the treasurer paying such warrants may first deduct taxes and other
charges owed to any participating locality that are due from the party in whose
favor the warrant is drawn. The governing body of each participating locality
shall designate an official to provide notice and an opportunity for a hearing
to the party in whose favor the warrant is drawn in a manner that substantially
conforms with Article 21 (&#xA7; 58.1-520 et seq.) of Chapter 3 of this title
prior to applying the warrant to the outstanding debt. Any such compact shall
conform substantially to the provisions of the Setoff Debt Collection Act
(&#xA7; 58.1-520 et seq.). The treasurer deducting moneys from the warrant in
accordance with this subsection shall hold such funds and not make payment to
the claimant jurisdiction until such jurisdiction certifies that it is entitled
to such funds.

HISTORY: Code 1950, § 58-922; 1984, c. 675; 2001, cc. 470, 801; 2002, c. 64.