Which lien has the second-highest priority?

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

Answer: (C)

In lien priority, government claims tied to taxes usually sit near the top, with property tax liens typically holding first place. After that, state tax liens generally come next because tax authorities need reliable access to collect revenue from the debtor’s property. This makes state tax liens higher in priority than most private liens, including mechanics’ liens and liens that are simply based on recording dates.

So, among the options, state taxes occupy the second-highest position because they follow the property tax lien and outrank the other listed types. Federal tax liens and mechanics’ liens are typically lower in priority than state tax liens, and liens by recording date are generally subordinate to statutory tax liens.