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U.S. Supreme Court

Tax Ruling Rejects Administration View

Posted Jun 15, 2007 9:07 AM CDT
By Debra Cassens Weiss

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The U.S. Supreme Court disagreed with the Bush administration’s views on sovereign immunity when it ruled yesterday that that the courts may hear a suit against the nations of India and Mongolia for unpaid property taxes.

The Bush administration had urged the U.S. Supreme Court to support immunity, saying such suits could “adversely affect the nation’s foreign relations,” reports Linda Greenhouse of the New York Times.

New York City is seeking $25 million in taxes and interest from the two countries for its diplomatic housing within United Nations missions.

Even if courts ultimately rule for New York City, the finding would not be enforceable because the city could not foreclose on the property, the Times reports.

But the city hopes the ruling will nonetheless spur payment.

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