A tax lien can come into play to a delinquent taxpayer for not paying tax dues. This includes property, business, and income. States and counties use this type of enforcement to get back lost revenues. The Internal Revenue Service is not your only concern when it comes to collecting tax debt. It is because this also includes the federal government and all the way down to the municipal levels.
Taxpayers have heard about federal tax liens because it comes direct from the Internal Revenue Service. State tax liens are similar to this. The difference between the two is that multiple sections of the government can enforce a lien on the state level. Your state can place this against your property if you fail to pay personal taxes.
You would most likely be faced with a county lien when you fail to pay your property taxes. They can place the lien against both secured and unsecured property. If you do not act quickly, this gives them the ability to take over the property or sell the lien certificate to interested investors.
Municipal tax lien is just as damaging as those listed above. This is also used when a taxpayer fails to contribute taxes. Its process has to do with jurisdiction and based on where you reside.
Always remember that a lien is a serious ordeal no matter if it is state, federal, county, or municipal. When you owe taxes to the government, pay it right away or face the consequences.