Our court breathes life into Maryland tax liens.

On February 3, 2015, the Maryland Court of Special Appeals confirmed that tax liens do not die after 12 years.  You might die, but the tax lien on your land will survive you.

In State of Maryland  v. Shipe, a citizen argued that tax liens are good only for twelve years, and must be renewed like any other judgment lien if they are to extend beyond twelve years. The Comptroller argued that liens held by the State of Maryland might be enforced like ordinary judgment liens, but they are exempted from the renewal requirement. The court summarized its decision this way:

The State maintains that a recorded tax lien has the full force and effect of a judgment lien, and therefore, like other judgments held in favor of the State, it does not expire. Appellee disagrees, stating that a tax lien is not perpetual and that the General Assembly’s clear intent was to impose a temporal duration of no more than twelve years for a tax lien judgment subject to renewal. We agree with the State. 

So, there you have it-- a tax lien does not die.It will remain as an encumbrance on your land for longer than twelve years. The State of Maryland need not renew the lien like an ordinary judgment creditor.

There remain other means to attack a tax lien, but the appellate court has now eliminated the easiest.

A lien created after the death of the debtor may not be a lien, at all.

If you have a claim involving an estate, and claims against that estate, take a look at Elder v. Smith, No. 34, September Term 2009, released January 13, 2010. Here, the ex-wife of the decedent reduced a marital award of over $30,000 to judgment AFTER hubby died. The Orphan's Court ordered her to release the lien. Both appellate courts upheld the Orphan's Court determination that the post-death creation of a judgment lien for a pre-death claim is not a permitted way to enhance the priority of a claim against the decedent's estate.

The Court of Appeals went further, saying that it was behond the jurisdiction of the Orphan's Court to invalidate a judgment of the Circuit Court. The Orphan's Court can only administer the estate of the dead fellow, and can only elect to disregard the relative lien priority created by the Circuit Court judgment.

It appears that this factual situation may require litigation in BOTH the Circuit Court and the Orphan's Court.