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The lien, filed with the Pima County Recorders Office May 30, shows that Borderland failed to pay sales taxes from March 31, 2020, through Feb. 28, 2025, accruing monthly penalties of 10% and 15% interest.

Borderlands owed the state $250,489.73 at the time of the filing on May 6; the lien was recorded in Pima County last Friday.

CEO Es Teran did not return repeated phone calls and text messages seeking comment. State officials would not comment, citing confidentiality concerns.

Borderlands board member Drew Palmer on Tuesday said he was unaware of the lien and the total amount the state claimed the company owed, although he acknowledged that the brewery owed the state “a back debt.� Palmer said the company made a “sizeable payment� in the last six months. He refused to divulge the amount.

The lien is the latest blow for Borderlands, which learned in late April that it would have to leave its flagship home at 119 E. Toole Ave. by summer’s end. The brewery had been on a month-to-month lease with its landlord, , for at least a year as it navigated mounting debt that included more than $390,000 that its board members had loaned the company and $146,330 owed to the Small Business Administration, according to information Palmer provided to shareholders in April.

At that meeting, Palmer told shareholders that the company’s arrears to the state Department of Revenue was $79,170, according to documents provided by shareholders. The state lien shows unpaid sales taxes totaled more than $195,000, while penalties and interest added another $60,000.

The brewery, meanwhile, hasn’t brewed its own beer since at least last fall, when Teran let go of the brew team operating out of Voltron Brewing Company, 330 S. Toole Ave. Voltron was a collaboration between Borderlands and Fire Truck Brewing, which bowed out of the market in January.

The equipment is still in the South Toole Avenue industrial plaza, Palmer said. A group that includes Empire Pizza co-owner David Furmanski bought Fire Truck’s equipment and took over the lease on the 8,750-square-foot space not long after Fire Truck closed.

The state lien lists Borderlands Brewing Company Inc. and Borderlands Brewing WCompany, both with the company’s downtown address. It does not list the two Borderlands brewpubs — Borderlands Sam Hughes at 2500 E. Sixth St., which Teran opened in January 2023; and Borderlands North at 5605 E. River Road in the River Center, which opened in November 2024. Those businesses, Palmer said, operate under a licensing agreement with Borderlands Brewing in which the owners pay a quarterly fee to use the Borderlands name and buy beer from the brewery.

On Arizona Corporation Commission documents originally filed in December 2020 and amended in October 2023, Teran is listed as a principal in Borderlands Taproom Concepts LLC with three partners. The documents list the Borderlands Sam Hughes address.

A February 2024 Corporation Commission filing for Borderlands Brewing North has the brewery’s downtown address and Teran is the only person listed on the document.