Final answer:
If a property owner does not pay their taxes, the IRS may put a tax lien on their property. Property taxes fund local governments and are based on property value. Unpaid property taxes can lead to liens and potentially the sale of the property to recover owed taxes.
Step-by-step explanation:
If a property owner does not pay their taxes, the Internal Revenue Service (IRS) or local tax authority may place a tax lien on their property. This is a legal claim against the property for the unpaid amount owed in taxes.
Property taxes are a form of revenue for local governments and are assessed based on the value of the property, whether it's a home, land, or a business. If these taxes go unpaid, it can lead to a lien, and if the debt remains unsettled, it could eventually result in the property being seized or sold to satisfy the debt.
Property taxes are considered progressive because property ownership is typically concentrated among higher-income groups. However, they can be unpopular due to being collected in lump sums, which are more visible than taxes collected in small amounts, such as sales taxes.
In response to this unpopularity and rate increases, there have been movements to limit the ability of local governments to raise property taxes, such as California's Proposition 13 initiative.