Once again, U.S. courts have
ruled against Mongolia and ordered payment of $4 million to New York
City for property taxes on buildings housing its diplomatic staff.
In 2003, New York City filed
suit against India, Mongolia and the Philippines, claiming nearly $60
million in back taxes were owed.
However, all three countries
along with the U.S. State Department, claimed that U.S. law forbid taxing
buildings used for diplomatic purposes by foreign countries.
The U.S. Supreme Court ruled
in 2006 that New York City could collect taxes on those properties,
or portions of properties, used for housing staff and other non-diplomatic
activities.
Wednesday’s court decision
appears to be the final ruling prior to nations having to pay New York
City for back taxes,
Besides Mongolia, India is
facing a $42 million tax bill.
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