Have you ever wondered, do state tax liens expire? This is a very good question to ask if you are delinquent on your taxes or have missed the new 10 year minimum payment. Most times you will find that the state tax lien does not expire until the very next year, which defeats the purpose of starting the process in the first place. If you are in the situation of having a delinquent tax lien then there is help. You can take the services of a good tax resolution firm, who will work with you to get the delinquent taxes removed from your credit report and have you up and running as a new tax paying citizen. 

One of the first questions that you should ask when it comes to do state tax liens expire is what the laws say. There are two main laws that affect the ownership of tax liens. The first of which is the “fall-back” rule, which states that if a lien is registered but never collected, the owner loses his rights to the tax lien and it becomes a worthless piece of property. The second of which is the “expired date” rule which states that if a tax lien has been placed but it has expired for any reason then it is no longer valid and must be re-instated. There are also many technicalities involved in determining when a state tax lien expires. Some of these technicalities are more common in states like Arizona than in other states. For example in Arizona if a homeowner defaults on his mortgage he has the right to foreclose on the home and live in it free and clear. While this might seem like a good idea it may create problems for the homeowner because Arizona laws state that if you live in a residential property for one year and use it as a vacation home then you lose your right to a home in the state of Arizona.

Do State Tax Liens Expire? And If So When?

Another set of problems that arise from the question of when do state tax liens expire is the question of how much time one has to file their taxes. All states have certain deadlines in which the tax due on a delinquent property must be paid. In addition to the deadline states also have “year limit” periods in which property owners must pay their taxes; in most cases these limit statutes vary by state. One way to determine the validity of a tax lien is by looking at what a lien is and how it was created. A tax lien is simply a claim by a property owner to collect certain types of tax from an individual. There are different types of liens ranging from a property tax levy (which is designed to collect property taxes) to a property assessment (which is designed to collect for roads). There are also special assessments, known as impossibilities, which are designed to allow property owners to recover interest and penalties for unpaid taxes. Of course, no matter how long a state tax lien expires, if a lien has been placed upon your property there is no time to stop paying. Once a tax liability has been placed the collector can begin collection efforts immediately. The best way to avoid collection efforts is to find out when you state tax liability will expire. Then make sure that you pay it or face dire consequences. If you are able to pay your federal tax liability before the federal lien occurs then chances are that your state tax lien will not expire and you can peacefully move forward.