We are getting ready to have our first vehicle auction of vehicles seized by the sheriff for delinquent taxes. When there is a lien from a financial institution on the vehicle do the taxes or the lien holder get paid first?

If the taxes are owed on the vehicle that is seized they get paid prior to the lienholder pursuant to Code of Virginia §58.1-3942C. The only thing that would be paid ahead of the taxes would be the costs of the sale, if there are any. If the taxes are owed on other property than that which was seized (e.g. other vehicles); the lienholder gets paid before taxes can be applied on the other (not seized) property.