Chapter 12 - § 12.12 • STATE TAX LIENS

• Jurisdiction: Colorado

§ 12.12 • STATE TAX LIENS

The question of tax liens is for legislative determination. The legislature may or may not make taxes a lien upon property. If it does not do so, no lien exists. The legislature may also determine the priority of tax liens.⁵²⁶

§ 12.12.1—Property Tax Liens

The lien of general taxes attaches to all taxable property, real and personal.⁵²⁷ The lien is perpetual, and has priority over all other liens.⁵²⁸ For the enforcement of state property tax liens, see Chapter 30.

§ 12.12.2—Inheritance and Gift Tax Liens

Inheritance Tax Liens

The inheritance tax formerly imposed by C.R.S Title 39, article 23 was a lien upon real property passed and transferred for a period of 15 years from the date of death.⁵²⁹ The inheritance tax was repealed for all decedents dying after December 31, 1979.⁵³⁰ Therefore, all inheritance tax liens have now expired.

Gift Tax Liens

The gift tax formerly imposed by C.R.S. Title 39, article 25 was a lien upon all property and rights to property of the donee for a period of ten years from the time the gift was made.⁵³¹ The gift tax was repealed for all gifts made after December 31, 1979.⁵³² Therefore, all gift tax liens have now expired.

§ 12.12.3—Estate Tax

The person required to file the return must pay the Colorado estate tax.⁵³³ If the tax is not paid when due, the spouse, qualified heir, distributee, transferee, trustee (except trustee of a 401(a) trust), surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary who receives, or who has on the date of the decedent's death, property included in the gross estate or generation-skipping transfer is personally liable for the Colorado estate tax to the extent of the value of the property. The personal liability is not valid as against a purchaser, mortgagee, pledgee, or transferee of, or the holder of a security interest in, the property if acquired for a full and adequate consideration in money or money's worth. A recorded instrument on which a state documentary fee is noted is prima facie evidence that the transfer was for full and adequate consideration in money or money's worth.⁵³⁴ If the department of revenue is satisfied that the estate tax is not due, or that the tax liability has been fully discharged, it will issue a certificate of tax determination indicating that the person who filed the Colorado return is free of any claim by the state for estate taxes.⁵³⁵ However, no tax waiver, consent to transfer, certificate of tax determination, or similar document is required for the transfer of real property included in a gross estate or generation-skipping transfer in the case of decedents dying on or after July 1, 1980.⁵³⁶

§ 12.12.4—Sales and Use Tax Liens

The sales and use taxes imposed by C.R.S. Title 39, article 26 are a lien upon the goods and business fixtures, other than goods for sale in the ordinary course of business.⁵³⁷ A notice of lien may be recorded in the office of the clerk and recorder, and when recorded becomes a lien upon the real and personal property of the taxpayer in the county.⁵³⁸ The lien is subject to preexisting claims or liens of bona fide...