Paying it will not remove it from your report; however, the taxing authority will release the lien when it is paid and the status of the lien will be reported as released.
My experience is that the lien pretty much holds your score down until the release is recorded. I am hoping that it has less of an impact now that it is paid (so far, that's not the case). The mortgage broker I consulted with said that I could not get a loan without the lien being released.
