A federal appeals court has decided that India and other countries do not owe tens of millions of dollars in property taxes on New York City buildings they use as diplomatic missions.
The decision came Tuesday from the 2nd U.S. Circuit Court of Appeals in Manhattan. It upheld a State Department decision in 2009 establishing a tax exemption on property owned by foreign governments and used to house staff for the United Nations or consular posts. The exemption was applied retroactively.
The appeals court says the State Department acted within its power. The State Department's decision came after a judge said in 2008 that India, Mongolia and the Philippines owed $57.6 million in property taxes. The judge had said that India alone owed more than $42 million.
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