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, / Embassy Law Link