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DebtHelp.com Tip: Whenever you do not pay your property taxes (real or personal), you are facing the chance of having your state start the process of placing a tax lien on the property affected by the taxes. Your individual state, where the property is located, will define and determine what your legal property interest is with respect to the affected property.
It also will determine what your property tax is based upon two items. The first is your property's assessed value. The second factor determining your property taxes is the current tax rate.
Once your property tax interest has been determined by your state, it is then up to the federal government. The IRS will start the federal tax lien process. Your federal tax lien will be for the amount of any property taxes owing on your property.
Each state will have details about their tax collection process. Usually, the Department of Revenue is the taxing authority. Check with your individual state to see how they handle the tax collection process.
Overall, you will first be given the opportunity to pay your unpaid property taxes of your free will. If you fail to do this, the next step in the collection process begins. The government will start the enforced collection route (a lien).
A property tax lien is filed in the county courthouse where your property is located. It is a public record for all to see. It will remain a public record until the tax debt has been paid in full – including interest and any additional charges. Even though the federal tax lien is not required to be filed, filing it provides the IRS with priority over other creditors you have.
The IRS tax lien attaches to your personal and real property and any future interests you may obtain in any property. If you own a business, the tax lien will attach to any rights you have in your property.