Which lien has priority higher than property taxes and special assessments?

• A. Federal taxes
• B. State taxes
• C. Mechanics liens
• D. Other liens by dates recorded

Answer: (A)

Understanding lien priority means looking at who has the strongest claim when debts are paid from a property's sale. A federal tax lien is created by the IRS when federal taxes aren’t paid and it attaches to all of the taxpayer’s property. Because of the way federal law treats these liens, the federal tax lien is given higher priority than the local property tax lien and the special assessment lien in this context. That means proceeds from a sale would first go to satisfy the federal tax lien before addressing the property taxes and special assessments. The other options involve liens that either come from state or private claims or depend on filing dates, and they don’t have that same senior status in this framework.