Tax liens typically attach to all tangible personal property (including merchandise) either owned or used by a business and, in most cases, remain a first and prior lien superior to all other liens until paid.  

When purchasing an existing business or equipment from a business, the buyer and seller will typically request a “Certificate of Taxes Due” from the local taxing authority.  (Please note: The Seller must request the certificate of taxes due.  A buyer cannot request the certificate without the seller’s written authorization and release.)  This is an important step along with other title and lien search procedures when making a purchase of this nature to ensure that all outstanding liabilities are known and addressed at the time of closing or purchase.  

Even if a tax lien(s) and delinquent taxes occurs prior to you owning the property, a change of ownership does not abate the lien or the delinquent taxes.  It is the responsibility of the buyer to ensure that they purchase a business or equipment lien free, or to ensure that all liens and liabilities outstanding, at the time of purchase, are addressed, and an agreement regarding payment of any outstanding taxes is made and fulfilled.  

Sections 53-38 (sales tax), 53-106.1 (use tax), 53-207 (lodger’s tax), 53-246 & 53-299 (occupational privilege tax), 53-351 (facilities development admissions tax), and 53-417 (telecommunications business tax) of the Denver Revised Municipal Code (DRMC) make the purchaser of a business, and/or the purchaser of property/equipment liable for any unpaid taxes of the prior owner.