Franchise Tax Liens on Florida Property
A franchise tax lien is a government claim against property for unpaid franchise taxes. While Florida has no corporate franchise tax, liens from other states and federal tax liens can affect Florida real estate.
How They Arise
- Other states' franchise taxes (e.g., Delaware LLC owning FL property)
- Federal tax liens for unpaid IRS taxes
- Liens recorded in Florida public records
- Attach to all property owned by the delinquent taxpayer
Impact on Real Estate
- Create a cloud on title preventing clean transfer
- Must be resolved before sale or refinancing
- Appear on title searches and commitments
- May block title insurance issuance
- Federal tax liens can attach to homestead (limited enforcement)
Resolution
- Pay in full and obtain lien release
- Negotiate settlement or payment plan
- Obtain subordination agreement
- Challenge lien validity
- Federal liens expire 10 years after assessment
Related Terms
- Encumbrance — Tax liens as property encumbrances
- Evidence of Title — Liens discovered in title search
- Closing — Liens resolved at closing
Barnes Walker Title Services
Barnes Walker Title identifies and resolves franchise tax liens during Florida title searches, ensuring clear title at closing. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC