state tax lien
Noun: A legal claim or encumbrance imposed by a state government agency against a taxpayer's property (real estate, personal assets, or financial assets) due to the taxpayer's failure to pay owed state taxes. This lien secures the government's interest and priority in collecting the debt, often allowing the tax authority to seize and sell the property if the debt remains unpaid.
A "state tax lien" is a formal public record filed by a state's revenue or taxation department. It is used to denote that the government has a secured legal right to a taxpayer's property because of unpaid tax obligations, such as income or sales taxes. The lien attaches to the property and can affect the owner's ability to sell or refinance it until the debt is resolved.
- The state tax lien on the business's assets prevented the owner from securing a loan for expansion.
- Before purchasing the house, the buyer's attorney discovered a state tax lien filed against the previous owner.
- Failure to address the overdue balance resulted in the department of revenue filing a state tax lien.
- "To have a state tax lien placed/filed against one's property": This phrase describes the specific action taken by the tax authority.
- The entrepreneur was unaware that he could have a state tax lien placed against his commercial building for unpaid sales tax.
- "To be subject to a state tax lien": This describes the condition or liability of the taxpayer.
- Any delinquent taxpayer is subject to a state tax lien.
- Tax Lien (n): The general term for a lien imposed for unpaid taxes, which can be filed by federal, state, or local authorities.
- Federal Tax Lien (n): A specific lien filed by the Internal Revenue Service (IRS) for unpaid federal taxes.
- Lienholder (n): The entity (in this case, the state government) that holds the lien.
- Lien Release (n): The document that removes the lien after the debt is paid or otherwise resolved.
- Tax Encumbrance
- Government Claim
- Statutory Lien (when referring to its creation by law)
- To levy a lien: The official act of imposing the lien.
- The state has the authority to levy a lien to collect the debt.
- Lien priority: The order in which different liens are paid from the proceeds of a property sale.
- A state tax lien often has high lien priority, meaning it gets paid before other creditors.
- A "state tax lien" is a specific type of statutory lien, meaning it arises automatically by law when taxes are not paid, rather than through a contractual agreement.
- It is crucial to distinguish this from a judgment lien, which results from a court ruling in a lawsuit. A state tax lien is an administrative action.
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a lien on the property of a taxpayer that the tax collector can use upon default of payment of taxes