(A) In the event that the tax imposed by this chapter is not paid when due, the city shall have a lien against the related real property in an amount equal to the tax, together with all applicable interest and penalties. The lien shall expire only at the time as the outstanding tax, interest and penalties are paid in full, the lien is foreclosed or the period for bringing a foreclosure action described in division (C) hereof expires.
(B) Nothing in this section shall be construed to give the city’s lien a preference or priority over the rights of any bona fide purchaser, holder of a security interest, mechanics lienor, mortgagee or judgment lien creditor arising or existing prior to the recording of an instrument, evidencing the city’s lien, with the Recorder of Deeds of the county; provided, however, that the city’s lien, whether or not recorded, shall have priority over any interest in the real property, including any lien acquired by a person in connection with the person providing financing to the transferee taxpayer or the taxpayer’s nominee or designee for the acquisition of the real property. The absence of tax stamps in the proper amount on the deed, assignment or other instrument of transfer pursuant to which the transferee taxpayer acquired title to, or beneficial interest in, the real property, shall constitute constructive notice of the city’s lien to the person providing financing.
(C) The city may not commence an action to foreclose upon the lien more than seven years after the transfer giving rise to the tax liability; provided, however, that the running of the seven-year period shall be tolled for the duration of any judicial order enjoining or restraining the city from instituting a foreclosure proceeding.
(Ord. 94-13, passed 3-8-1994)