May 26, 1949
Hpn. D. C. Greer ~ ~..~ Opinion No. V-830 State-Hightiy engineer T&xas..Higj$va~.. Department Re: ..Thenecessity for Fed- Austin, 'T&as~.,. _ ._ ., era1 Income Tax Liens ,-tobe recorded on Cer- tificates of Title to motor-vehiclesand the .~ ,+tatus in relation to other liens. Dear Mr. Greer: I&request .anopinion on.three questions based ]upon.thefol.lowingfacts: ..~ 7. "The.Int.ernalRevenue.Departmentfiles liens ,.L-. against an.individual~.,.for..non-.~~~n~ off'Income .~:..Taxea..~ The.indWidua...owns.onenor sever&i motor .. ~:~ :'vehlCies. ,Certifi.cate of Title has been issued, or perhaps such Certifioateof Tit& will record a lien. ."TheseFederal'Liensfor Income Taxes are ,: filed'in t,heOffice,of the County Clerk in'a.bo,ok -. ..~ ..knownas the 'Federal Lien Record'." The.three questions referred to are: Should.thisDe rtment recognizeas a _ prio~"~~en.this.FsderalEen.for I~ncomeTaxes .eventhough aCertificate af Title,has been is- ~..~..sued.on which there.is.recordeda lien &ted _ ,& to-the recording df the'Federa1 Tax Lien? "2. Under Section3.,V.P.C., 1436-1, does ..the~.definit.ion of the term!Lien' apply to Fed- ~eral.IncomeTax Liens? . .: "If the answer to question 2 is in the af- ~_. .firmative~,~ must the .FederalTax 'Liensbe filed ~..with this Department? "3. What protection.~would a mortgagee have if henloans money on a-motor vehicle if a clear Hon. D. C,.Greer.,Page 2 (V-8301
Certificate~.of Title~is presented to him and it later .develops.that a Federal Income Tax Lien $Eit$;n filed against the-owner of the ve- . For-convenienceof this.opinion we will answer your second questionfir~at., and thenthe first and third .inthat order.
~\ ~~Article..l43&1;. Section. 3.,V.P.C.; provides: _ ~,~~a.term'.'lien;'means.every kind of~lease .~conditionalsales contract,-deed..of trust, chattel -mortgage .trnst~receipt,.reservationof title, or otherwr-1, tten instrumentof whatsoeverkind or character whereby an interest,other than absolute .title,.is soughtto be.held..orgivenin a motor vehicie,.alsoany l. by C n- ,s.titution. or'Statute.,"- .. : 7 A i.ien..has been .defined...by our Courts as a right .~to: &force.a.charge~upon.propertyofanother for the MY- _~ ..ment..,or...sat.isfaction.of.~claims... IX is.. also a charge upon .property. for.the.pay+?ntof a debt...There can be no lien ..~without a..deht; Vaugbad~v,~IJohnRancock'MutualL%f.fe'In- .
i.1 - :,f,..:~:.. ._ :~' _,~ .:.. ...~.~~~.Fedei.dl...right.~.tcJ: a"&%& 'unpaidincome . &&es, aris.es,.b~.c.;virtue..of Federal%&&te. 26 U.S.C.A., _ .. ._Section _36i78~?,1aternal~Revenue Code&provides: .I ,~ -1 .~ .,_
.-F.Xf .anypersonpliable'ta+ay any tax neg- lLe~tsnpr,:yefua~es.to pay..the> '&me after demand, ..the.amount(including~any interest, penalty, ad- .ditionalamount.,oraddition te"snch tax, to- gethheit_~th,~any~Eosts thatmay'~accruein,addi- _..t.) shall.be a.lieri+.favor of the Dnited~States uponall nroperty and rights to propeey; whather,realor pers$nal, belonging to s&h~Sp&&o,n; W: .: .,_ ~,.~,, : ;. ., . -
Hon. D. C. Greer, Page 3 (V-830)
Itsisapparent this type lien fits squarely.with- in the.LabQve court ,definition.But the Section 3..defin- itiQn.obviollsly containsa.restcictedapDlication.~. ..It applieson1y.t.o. those~.liens. nsoughtto be'held or given in .a motorsvehicle!?. Consequently:,. the statutory defin- . ition does.notapplyto a.yederal.~.,income:,taxlienif .the. liqp, for.example',seeks enforc~ement.against.8 personrs.," real~property...,However.., inthe event such a lien is'sought ._,....:to ,be.enfQrc,ed. against.a motor.~vehicle.:regist.ered~~~in'~Texas, S.ection.3of ~~icla,l1+36.-1.,applies.~.~T~ that etient, your .second..questi.Qn is answered in the affirmative. ~:~:Having so answered, you ask #whethersuch Federal lienmust be.filed,,with yourDepartment.
Indeed, Congress hasby Federal Statute required this corn&a&e. Section 3672, ~26.U.S.C.A.Internal Rev& enue,Code, provides: -- "(a,) Such lien.shall.notbe valid as a- ,.gainst any mortgagee.,. pledgee, purchaser,or ~..j.ndgment creditor,until.notice.thereof has been .. .~ filed..bythedollector A- . "(1) In the.office in.which~the filing of such notic~eis.authQrized.by.thelaw of the State -1