Which lien results from unpaid taxes at the municipal level?

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

Answer: (A)

Unpaid local property taxes create a lien that the municipality places on the property to secure payment of those taxes. This municipal property tax lien attaches to the property itself and typically takes priority over many other claims, meaning the government can pursue collection through methods like a tax sale or foreclosure if the debt isn’t paid. This is distinct from a federal tax lien, which arises from unpaid federal taxes and is filed by the IRS, not a local government. A statutory lien is a broader term for liens created by law, which can cover various public claims but doesn’t specify the local tax context. An equitable lien, by contrast, comes from a court recognizing a creditor’s right to a remedy based on fairness in a particular situation rather than from tax assessment.