California Government Code 7170 – (a) Except as provided in subdivisions (b) and (c), a state tax …
(a) Except as provided in subdivisions (b) and (c), a state tax lien attaches to all property and rights to property whether real or personal, tangible or intangible, including all after-acquired property and rights to property, belonging to the taxpayer and located in this state. A state tax lien attaches to a dwelling notwithstanding the prior recording of a homestead declaration (as defined in § 704.910 of the Code of Civil Procedure).
(b) A state tax lien is not valid as to real property against the right, title, or interest of any of the following persons where the person‘s right, title, or interest was acquired or perfected prior to recording of the notice of state tax lien in the office of the county recorder of the county in which the real property is located pursuant to Section 7171:
Terms Used In California Government Code 7170
- County: includes city and county. See California Government Code 19
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Government Code 17
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
- Statute: A law passed by a legislature.
- Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10
(1) A successor in interest of the taxpayer without knowledge of the lien.
(2) A holder of a security interest.
(3) A mechanic’s lienor.
(4) A judgment lien creditor.
(c) A state tax lien is not valid as to personal property against:
(1) The holder of a security interest in the property whose interest is perfected pursuant to § 9308 of the Commercial Code prior to the time the notice of the state tax lien is filed with the Secretary of State pursuant to Section 7171.
(2) Any person (other than the taxpayer) who acquires an interest in the property under the law of this state without knowledge of the lien or who perfects an interest in accordance with the law of this state prior to the time that the notice of state tax lien is filed with the Secretary of State pursuant to Section 7171.
(3) A buyer in ordinary course of business who, under § 9320 of the Commercial Code, would take free of a security interest created by the seller.
(4) Any person (other than the taxpayer) who, notwithstanding the prior filing of the notice of the state tax lien:
(A) Is a holder in due course of a negotiable instrument.
(B) Is a holder to whom a negotiable document of title has been duly negotiated.
(C) Is a protected purchaser of a security or is a person entitled to the benefits of Section 8502 or 8510 of the Commercial Code.
(D) Is a purchaser of chattel paper who gives new value and takes possession of the chattel paper in the ordinary course of the purchaser’s business or a purchaser of an instrument who gives value and takes possession of the instrument in good faith.
(E) Is a holder of a purchase money security interest.
(F) Is a collecting bank holding a security interest in items being collected, accompanying documents and proceeds, pursuant to § 4210 of the Commercial Code.
(G) Acquires a security interest in a deposit account or in the beneficial interest in a trust or estate.
(H) Acquires any right or interest in letters of credit, advices of credit, or money.
(I) Acquires without actual knowledge of the state tax lien a security interest in or a claim in or under any policy of insurance including unearned premiums.
(J) Acquires any right or interest in property subject to a certificate of title statute of another jurisdiction under the law of which indication of a security interest on the certificate of title is required as a condition of perfection of the security interest.
(K) Is a purchaser of an instrument who would have priority under subdivision (d) of § 9330 of the Commercial Code.
(L) Is a purchaser of investment property who would have priority under paragraph (1), (3), (4), or (5) of § 9328 of the Commercial Code.
(M) A transferee of money who would take free of a security interest under § 9332 of the Commercial Code.
(5) A judgment lien creditor whose lien was created by the filing of a notice of judgment lien on personal property with the Secretary of State prior to the time the notice of state tax lien is filed with the Secretary of State pursuant to Section 7171.
(Amended by Stats. 1999, Ch. 991, Sec. 45.3. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)