§3991 — Title 50 War and National Defense | U.S. Code

Summary

Protects a person in the military from having their home, car, or other property sold to collect certain unpaid taxes or assessments (but not income tax) if the tax was due before or during their military service and the property was used as a home, for work, business, or farming by them, their family, or employees. A sale to collect the tax can only happen with a court order after the court finds that military service does not affect the person’s ability to pay. A court can pause collection actions during service and up to 180 days after release. The servicemember may redeem forfeited or sold property while serving or within 180 days after release, and state redemption times stay the same. Unpaid tax earns interest at 6 percent per year but no extra penalties for nonpayment. The rule covers property owned alone or jointly with dependents.

Title 50, §3991

War and National Defense — Source: USLM XML via OLRC

(a)This section applies in any case in which a tax or assessment, whether general or special (other than a tax on personal income), falls due and remains unpaid before or during a period of military service with respect to a servicemember’s—

(1)personal property (including motor vehicles); or

(2)real property occupied for dwelling, professional, business, or agricultural purposes by a servicemember or the servicemember’s dependents or employees—

(A)before the servicemember’s entry into military service; and

(B)during the time the tax or assessment remains unpaid.

(b)(1)Property described in subsection (a) may not be sold to enforce the collection of such tax or assessment except by court order and upon the determination by the court that military service does not materially affect the servicemember’s ability to pay the unpaid tax or assessment.

(2)A court may stay a proceeding to enforce the collection of such tax or assessment, or sale of such property, during a period of military service of the servicemember and for a period not more than 180 days after the termination of, or release of the servicemember from, military service.

(c)When property described in subsection (a) is sold or forfeited to enforce the collection of a tax or assessment, a servicemember shall have the right to redeem or commence an action to redeem the servicemember’s property during the period of military service or within 180 days after termination of or release from military service. This subsection may not be construed to shorten any period provided by the law of a State (including any political subdivision of a State) for redemption.

(d)Whenever a servicemember does not pay a tax or assessment on property described in subsection (a) when due, the amount of the tax or assessment due and unpaid shall bear interest until paid at the rate of 6 percent per year. An additional penalty or interest shall not be incurred by reason of nonpayment. A lien for such unpaid tax or assessment may include interest under this subsection.

(e)This section applies to all forms of property described in subsection (a) owned individually by a servicemember or jointly by a servicemember and a dependent or dependents.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 561 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

A prior section 501 of act Oct. 17, 1940, ch. 888, art. V, 54 Stat. 1187, related to rights in public lands and grazing lands, prior to the general amendment of this Act by Pub. L. 108–189. See section 3992 of this title. Provisions similar to this section were contained in section 500 of act Oct. 17, 1940, ch. 888, art. V, 54 Stat. 1186; Oct. 6, 1942, ch. 581, § 14, 56 Stat. 776, prior to the general amendment of this Act by Pub. L. 108–189.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.

§3991 Taxes Respecting Personal Property, Money, Credits, and Real Property