§560. Taxes respecting personalty, money, credits, or realty; sale of property to enforce collection; redemption of property sold; penalty for nonpayment; notice of rights to beneficiaries of section

(1) The provisions of this section shall apply when any taxes or assessments, whether general or special (other than taxes on income), whether falling due prior to or during the period of military service, in respect of personal property, money, or credits, or real property owned and occupied for dwelling, professional, business, or agricultural purposes by a person in military service or his dependents at the commencement of his period of military service and still so occupied by his dependents or employees are not paid.

(2) No sale of such property shall be made to enforce the collection of such tax or assessment, or any proceeding or action for such purpose commenced, except upon leave of court granted upon application made therefor by the collector of taxes or other officer whose duty it is to enforce the collection of taxes or assessments. The court thereupon, unless in its opinion the ability of the person in military service to pay such taxes or assessments is not materially affected by reason of such service, may stay such proceedings or such sale, as provided in this Act [sections 501 to 593 of this Appendix], for a period extending not more than six months after the termination of the period of military service of such person.

(3) When by law such property may be sold or forfeited to enforce the collection of such tax or assessment, such person in military service shall have the right to redeem or commence an action to redeem such property, at any time not later than six months after the termination of such service, but in no case later than six months after the date when this Act [said sections] ceases to be in force; but this shall not be taken to shorten any period, now or hereafter provided by the laws of any State or Territory for such redemption.

(4) Whenever any tax or assessment shall not be paid when due, such tax or assessment due and unpaid shall bear interest until paid at the rate of 6 per centum per annum, and no other penalty or interest shall be incurred by reason of such nonpayment. Any lien for such unpaid taxes or assessment shall also include such interest thereon.

(Oct. 17, 1940, ch. 888, art. V, §500, 54 Stat. 1186 ; Oct. 6, 1942, ch. 581, §14, 56 Stat. 776 .)

Amendments

1942-Subsec. (1). Act Oct. 6, 1942, inserted parenthetical clause excepting income taxes, included taxes and assessments falling due prior to period of military service, and extended benefits to cover personal property, money, or credits, and real property owned and occupied for professional purposes.

Subsec. (2). Act Oct. 6, 1942, §14(a), amended subsec. (2) generally.

Subsec. (5). Act Oct. 6, 1942, §14(b), repealed subsec. (5) which required the Secretaries of War, Navy, and Treasury to give notice of the benefits of this section to persons in the military service.

Section Referred to in Other Sections

This section is referred to in section 530 of this Appendix.