New York City Owed Millions In Back Embassy Taxes
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Collecting property taxes is difficult, collecting back taxes from foreign countries is even harder. New York City is going after 3 countries over a partial use provision in their embassies to collect millions of dollars in taxes.
The buildings in question are owned by the governments of India, Mongolia, and the Philippines, and house staff and offices for their missions to the United Nations.
Under international treaties, consulates and embassies tend to be tax exempt. But the city claims it has a right to collect taxes on parts of the buildings used for non-diplomatic purposes. Since not all the floors of the buildings are used for diplomatic purposes, the judge says the countries have to pay some local taxes.
The Supreme Court ruled last June that countries could be sued over back taxes in United States courts, leading to the city’s lawsuit. via NY1: Top Stories.


Comment by dean on 9 February 2008:
Here is a little story. . .
In 1988 I moved to Wash D.C. from San Francisco. The biggest story in the capital was not the Redskins, the murder rate, Marian Barry, or the rising epidemic of crack cocaine.
Story one that dominated my first month in town was the Russian consulates refusal to pay their parking tickets.
The embassy racked up over $2,000,000 in citations!
To my knowledge none of that money was ever collected.
dean