What is a tax lien?

A tax lien is a legal claim against a property for unpaid taxes. This means that when property taxes are not paid, the local government can place a lien on the property as a way of securing the debt owed. This lien serves as a public record and indicates that the property cannot be sold or refinanced without first addressing the outstanding tax obligation. It is an important mechanism for municipalities to ensure that tax revenues are collected and can lead to the eventual sale of the property if taxes remain unpaid over time.

In the context of property ownership, having a tax lien can significantly affect the owner's ability to sell or finance the home, as the lien must be resolved before any transfer of ownership can take place. Understanding this concept is vital for tax assessors, as it relates to how properties are valued and the implications for both the property owners and the taxing authority.