Oregon SCRA Benefits: State-Duty 6% Cap & Court Relief
Part of: The Complete Guide to the SCRA
Oregon is one of the states that did not leave its Guard to the federal statute alone. It built civil relief into the militia code, and it built the two pieces that matter most: a hard 6 percent interest ceiling and a court door for relief and stays, both reaching state active duty.
What Oregon built into its militia code
| Protection | Federal SCRA | Oregon |
|---|---|---|
| Guard on state active duty | ✕ Not covered | ✓ Covered (ORS ch. 399) |
| 6% interest rate cap on pre-service debt | ✓ | ✓ State service members (ORS 399.240) |
| Relief from pre-service obligations | ✓ | ✓ Court application (ORS 399.238) |
| Stay of civil or administrative proceedings | ✓ | ✓ ORS 399.238 |
| State income tax on the duty-station election | Depends on state | Has an income tax; elect your home state |
The rate cap that mirrors the federal one
ORS 399.240 is the clean win. A pre-service obligation that carries more than 6 percent interest cannot charge a state service member more than 6 percent during active service, except by court order. That is the federal cap, written into state law for state orders. Run the same rate-cap play you would use federally, with the letter generator, and point to ORS 399.240.
The court door for everything else
ORS 399.238 is broader but works differently. Rather than apply automatically, it lets a state service member ask a court or administrative body for relief from a pre-service obligation, or for a stay of a proceeding, during service or within a year after. The body grants relief unless it finds your ability to comply was not materially affected by the service. That is the lever for a debt or case the flat rate cap does not solve. Calculate any related lease exit with the termination calculator, and on federal orders the full federal kit applies on top.
The tax side is ordinary. Oregon taxes income, so a nonresident makes the standard duty-station election and pays the home state instead.
Run the Oregon stack
- Oregon Guard on state active duty: send written notice on pre-service debt and invoke the 6% cap under ORS 399.240 (letter generator).
- A pre-service obligation or a court case the cap does not solve: apply for relief or a stay under ORS 399.238, during service or within a year after.
- On federal orders, run the full federal kit: 6% cap, lease exit, and foreclosure shields.
- Document your state orders so the court can see the activation that triggers chapter 399.
- Stationed in Oregon from out of state: confirm the tax election so withholding follows your home state.
The law behind this: ORS 399.240
Limitation on rate of interest for state service members: 6% cap on pre-service obligations during active service, with relief and stays under ORS 399.238: read the statute.
Frequently asked questions
Does Oregon cover the National Guard on state active duty?
Yes. Oregon Revised Statutes chapter 399 extends civil relief to members of the organized militia called into active state service, as well as Oregon Guard members called out of state under Title 10 or Title 32. State active duty is the gap federal law ignores, and Oregon fills it.
What is the Oregon interest rate cap?
ORS 399.240 provides that a pre-service obligation bearing interest above 6 percent per year may not, during any part of active service, bear interest above 6 percent except by court order. It is the same 6 percent ceiling as the federal SCRA, applied to state service members on state active duty.
What relief can I apply for under ORS 399.238?
A state service member may apply to a court or administrative body, during active service or within one year after it ends, for relief from an obligation or liability incurred before the service began, and for a stay of a civil or administrative proceeding. The body grants relief unless it finds your ability to comply was not materially affected by the service.
Does Oregon tax military pay?
Oregon has a state income tax but provides subtractions for certain military pay, and a nonresident stationed in Oregon pays their elected home state, not Oregon, under the standard residency rules. Confirm the current military pay subtraction with the Oregon Department of Revenue.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.