42-1151. Lien

A. If any tax, interest, penalty or other amount owed by the taxpayer to the department that the department is required to collect is not paid by a taxpayer when due, such unpaid amounts constitute a lien upon all property and rights to property, whether real or personal, belonging to the taxpayer or acquired by the taxpayer from the date the amounts are assessed or the date the return prescribing the liability is filed until the liability for the assessed amounts is satisfied.

B. The lien prescribed in this section is not valid against the following until the notice of the lien is filed as prescribed in section 42-1152:

1. A mechanic's lienholder who holds a lien pursuant to title 33, chapter 7, article 6. The lien exists on the later of the date the lien becomes valid against subsequent purchasers without actual notice or the date the lienholder begins to furnish the services, labor or materials.

2. A purchaser who, for adequate and full consideration in money or money's worth, acquires an interest in property, other than a lien or security interest, which is valid against subsequent purchasers without actual notice. Any of the following which is not a lien or security interest is an interest in property:

(a) A lease of property.

(b) A written executory contract to purchase or lease property.

(c) An option to purchase or lease property or any interest in property.

(d) An option to review or extend a lease of property.

3. A holder of a security interest in property acquired by contract to secure payment or performance of an obligation or to indemnify against loss or liability. A security interest exists:

(a) If the property exists and the interest has become protected against a subsequent judgment lien arising out of an unsecured obligation.

(b) To the extent that the holder has parted with money or money's worth.

4. A judgment lien creditor.

C. Although a notice of lien has been filed as prescribed by section 42-1152, the lien is not valid against:

1. Personal property purchased in casual sale as provided in section 6323 of the internal revenue code.

2. Residential property subject to a mechanic's lien for certain repairs and improvements as provided in section 6323 of the internal revenue code.