In what appears to be its final ruling, a US court has ruled that Mongolia, as well as other countries, will have to pay back taxes on buildings they own in New York City. 

In a historical decree, the courts have ordered that countries with diplomatic missions in New York City must pay property taxes on all buildings which are not part of a diplomatic compound. 

Mongolia owes $4.2 million in taxes for a building which houses staff members and offices for its United Nations mission. 

India owns a 26 story building which includes 20 floors of apartments for its UN staff and six floors of offices. India will have to pay some $40 million in back taxes. 

Under international treaties, foreign embassies and consulates are exempt from paying property taxes as they are considered sovereign territory. 

In court, New York City has successfully argued that it may collect taxes on parts of buildings used for non-diplomatic functions, such as housing employees.

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