A property tax lien is a lien or claim for money due to a federal, state, or local government for unpaid and delinquent taxes. For example, the federal government may place a lien on a homeowner’s home or other real property for unpaid federal income taxes, and state and local governments (often counties) may place a lien on real property for unpaid income or property taxes.
The federal, state, or local government entity—also known as a taxing authority—may seek to recover payment for unpaid taxes by forcing the sale of the property on which the lien is placed in the foreclosure process—a process in which the validity of the lien and satisfaction (payment) for the lien is litigated or determined in court.
In Louisiana (LA), a property tax lien represents a legal claim against a property by a governmental entity due to the owner's unpaid property taxes. When property taxes are delinquent, the local parish tax collector can enforce the lien by selling the property at a tax sale. The process begins with the tax collector notifying the homeowner of the delinquent taxes and the impending tax sale. If the taxes remain unpaid, the property is auctioned to the highest bidder. The original owner has a redemption period, typically three years for residential properties, during which they can reclaim the property by paying the owed taxes plus interest and penalties. If the property is not redeemed, the tax sale purchaser can file a lawsuit to quiet the tax title, thereby becoming the new owner of the property. For federal tax liens, such as those for unpaid federal income taxes, the Internal Revenue Service (IRS) can place a lien on all of the taxpayer's property, including real estate. The IRS must notify the taxpayer in writing and can eventually force the sale of the property to collect the unpaid taxes. Both federal and state tax liens are generally given priority over other liens and must be satisfied before the property can be transferred free and clear to a new owner.