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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