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1810-1813 Reports & Settlements: Servicemembers’ Civil Relief Act

1810. WHO QUALIFIES
The Act defines the term "person in military service" as all active-duty members of the armed forces.  An enlistee has the same benefits as does a draftee, and no distinction is made between enlisted personnel and officers.  Benefits extend to dependents but not to business partners or to family members who are not dependents. 

The following individuals do not qualify under provisions of the Act:

1) Military retirees;

2) Persons on inactive reserve status;

3) Civilian defense workers; and

4) Merchant seamen.

1811. THE BENEFITS OF THE ACT
The Act applies only to property owned by the claimant or his or her dependents for dwelling, professional, business, or agricultural purposes, and only to those taxes becoming due immediately prior to or during the period of military service.  Personalty is included.

1) If a property tax is unpaid or is on an installment plan of redemption during and by reason of active service, the delinquent tax is subject to interest, at six percent per annum, in lieu of all other penalties or interest.

2) Execution of a judgment against the individual is stayed during the period of qualifying service and for 60 days thereafter, unless, in a court's opinion, the individual's ability to comply with the judgment has not been materially affected.

3) During the period of service and for six months thereafter, sales to enforce collection of a tax or assessment are prohibited unless first authorized by a court.

4) If a court does permit sale to collect a tax or assessment, the service person has a right of redemption (although the terms of redemption are unspecified) for six months after termination of the period of military service.

1812. HOW ONE QUALIFIES
Qualification does not depend on impairment of income alone.  Any condition that would reasonably impair the individual's ability to pay taxes or to respond to actions against his/her title to property must be considered.  See form SCO 1-08.

1813. TAXES SUBJECT TO THE ACT

1) If current-year taxes and assessments become delinquent after the onset of qualifying service, they are subject to interest only, at six percent per year, computed from the point of delinquency under California law.  Do not apply costs, penalties, redemption fees, or other charges.

2) Amounts accrued, as of the onset of qualifying service, remain charged against either the person or the property.  But, during the protected period, additional penalties that would be imposed pursuant to Revenue and Taxation Code sections 2922 or 4103 are set aside in favor of the overall six-percent interest.

The Act shields the service person eligible under its provisions from making payment currently and tolls (suspends) the effect of state lien-perfection laws during the protected period.  Therefore, the tax collector may not default any installment redemption plan because current taxes have not been paid.  For the protected period, substitute simple six-percent interest for the one-and-one-half percent per month interest required by subdivision (d) of Revenue and Taxation Code section 4221.