Posted on 08/19/2010 6:06:33 PM PDT by goldendays
Ruling: Foreign countries owe no NYC property tax
NEW YORK – India and other nations with diplomatic housing do not have to pay city property taxes, a federal appeals court ruled Tuesday in a long-running dispute that once reached the Supreme Court.
The decision by the 2nd U.S. Circuit Court of Appeals in Manhattan handed a victory to the governments of India and Mongolia, which had fought the city's demands that they pay tens of millions of dollars in taxes for their Manhattan embassy buildings. The three-judge panel said the State Department acted within its power in June 2009 when it established an exemption from taxes on property owned by foreign governments and used to house staff for permanent missions to the United Nations, the Organization of American States or consular posts.
The Foreign Missions Act allows the State Department to issue tax exemptions that pre-empt state and municipal tax laws, the appeals court said. "We are extremely disappointed," said city attorney Michael A. Cardozo. "This provides a free ride for foreign countries owning certain properties in New York City while unnecessarily burdening local taxpayers." Three years ago, the Supreme Court ruled that the city could sue countries to try to collect taxes on their properties.
The following year, a lower court judge ordered India, Mongolia and the Philippines to pay the city a total of $57.6 million in real estate taxes. Cardozo said the city will appeal the latest ruling to the Supreme Court. "Certainly, we're thrilled with the result," said Aaron Stiefel, a lawyer who represented India and Mongolia in the litigation. "It's a complete victory," he said. "We got everything we wanted." The
(Excerpt) Read more at news.yahoo.com ...
NYC steps up, and asks: “Sir, may I have another?”
No taxes, then no municipal services.
That would be fire, police, and sewage in my neighborhood.
And the Brain Dead Liberal Free Trader Globalists will keep insisting the US stays in the UN.
Pity the residents of NYC...because that tax not collected on the foreign consulates means the rest of NYC taxpayers get theirs raised...
Bedbug City, your request is granted.
New York Cannot Tax Mission Property
On August 17, 2010, the United States Court of Appeals for the Second Circuit in New York City ruled against New York City and in favor of The Permanent Mission of India to the United Nations and the Principal Resident Representative of the Mongolian People’s Republic to the United Nations. It reversed the judgment of the District Court, which permitted the city to tax property owned by the governments of India and Mongolia being used to house mission employees.
In its decision, the Court pointed to a June 2009 Notice from the U.S. State Department, which exempted foreign governments from paying real property taxes on property used to house the staff of permanent missions to the United Nations. The State Department explained that
As the largest foreign-government property owner overseas, the United States benefits financially much more than other countries from an international practice exempting staff residences from real property taxes, and it stands to lose the most if the practice is undermined.
The case is City of New York v. The Permanent Mission of India to the United Nations, docket number 08-1805. — Sara Harr, Legal Assistant, Berliner, Corcoran & Rowe, LLP, Washington, DC.
Tue, 18:03:38 17 Aug 2010 / Embassy Law Link
Geez, NYC can’t even beat Mongolia now
The United Nations is a liability in more ways than I can imagine. It should be dismantled. It’s a worthless money pit.
More reason to move the Hq. to Haiti.
Haul your own goddam trash!
The only thing I’m going to state is that technically all embassies and consulates are considered the soil of the country for which they have been established. The housing piece is a little iffy depending on if they are within the embassy/consulate proper. That’s why people keep trying to jump the walls into other countries embassies to ask for asylum, etc. It’s basically another country when you cross the gates. Now “why” we grant certain sizes and locations is beyond me, but .... that’s my understanding.
Same is true of flagged ships btw.
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