Check Your Understanding Answers
- Describe a property tax lien.
Property tax liens are involuntary and specific liens. California property owners who do not pay their property taxes by June 30th incur a superior lien on the property.
- List the four ways a federal income tax lien can be removed.
- Full payment
- The lien is discharged – this may occur during the sale of the property and allow for payment of the debt.
- Subordination – this may occur if the property owner is refinancing and equity is used to pay the tax debt.
- Withdrawal
- How long is a California income tax lien valid?
A California income tax lien is valid for 10 years from the date it is filed. It can be renewed twice if unpaid after each 10 year period for a total of 30 years.
- What is a municipal utility lien?
A municipality placing a utility lien against a resident's real property for failure to pay utility bills.
