Which lien is associated with unpaid local property taxes owed to a municipality?

• A. Federal (IRS) Tax Liens
• B. Statutory Lien
• C. Mechanic's Lien
• D. Municipality Property Tax Liens

Answer: (D)

Unpaid local property taxes create a lien on the property to secure payment for the municipality. This lien is built into law, automatically attaching to the property when taxes are delinquent, and it serves as the municipality’s security interest in its tax revenue. Because it directly protects local tax collections, this specific lien is described as a municipality property tax lien. It often carries strong priority, meaning it can affect other interests in the property until the tax debt is resolved, such as through payment or a tax sale.

UNrelated options: a federal tax lien arises from unpaid federal taxes, not local; a mechanic’s lien comes from unpaid bills for labor or materials on a property; a general statutory lien is a broad category created by statute but does not pinpoint the local tax context. The most precise and relevant description for unpaid local property taxes owed to a municipality is the municipality property tax lien.