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Proposition 209 Information Sheet
Proposition 209 was approved by voters in November 2022 and went into effect on December 5, 2022. It amends several statutes regarding debt collection. Review this Proposition 209 Information Sheet for important details before you use the garnishment forms.

Garnishment of Earnings

Proposition 209 decreases the portion of a debtor’s weekly disposable earnings that is subject to debt collection actions (other than support payments) to the lesser of 10% of disposable earnings, or 60 times the highest applicable federal, state or local minimum wage. (Previously, the amount of disposable earnings that was subject to debt collection actions (other than support payments) was the lesser of 25% of disposable earnings or 30 times the federal minimum wage.

The state minimum wage is currently higher than the federal minimum wage and can be found at: https://www.azica.gov/labor-minimum-wage-main-page. Currently there is one local minimum wage that is higher than the state minimum wage, and that is in Flagstaff. Thus, if you are being garnished in Flagstaff, that city's minimum wage would be used in the calculation.

Additionally, in a garnishment action, if the court determines by clear and convincing evidence that the higher percentage calculation on disposable earnings would cause extreme economic hardship to the debtor or the debtor’s family, the court may reduce the amount as permitted by law.

Interest Rates for Medical Debt

Proposition 209 amended ARS § 44-1201 and sets a cap on the maximum interest rate for medical debt (a loan, indebtedness, or other obligation arising directly from the receipt of health care services (defined) or of medical products or devices), to the lesser of 3% or the annual rate equal to the weekly average one-year constant maturity treasury yield, as published by the Federal Reserve Board, for the calendar week preceding the date when the consumer was first presented a bill.

Protection from Collections

The proposition also increased the exemption amounts for property protected from collections:

  • The homestead exemption increased from $150,000 to $400,000. (ARS § 33-1101)
  • The exemption on household furniture, furnishings, goods and appliances increased from $6,000 to $15,000. (ARS § 33-1123)
  • The exemption on the debtor’s equity in one motor vehicle increased from $6,000 to $15,000, or if the debtor or debtor's dependent has a physical disability, from $12,000 to $25,000. (ARS § 33-1125)

Beginning in 2024, those exemption rates will be adjusted to account for changes in the cost of living.