When a person doesn’t pay their taxes, be they state, local, or federal, a lien can be placed against property that they owe. Usually this comes when they don’t pay their property taxes. If the tax lien stays for a period of time – usually years – the property is then put up for auction, with the starting bid being what is owed in back taxes. So if a piece of land has $400 in back taxes owed, and you pay that taxes off at the auction, you just bought that property for $400. You can keep that property or turn around and sell it for a profit.
