Rep. Fossella Takes Aim at
Scofflaw Nations to Recover
Millions in Unpaid Taxes & Fines

Fossella Drafting Legislation To Withhold Foreign Assistance to Any Nation That Owes Back Taxes Or With Unpaid Parking Tickets

[Washington, DC] – Congressman Vito Fossella today announced that he will introduce legislation next week that would withhold a portion of foreign assistance to any nation that owes the United States money in unpaid property taxes and parking fines.

Fossella’s bill comes just days after a federal judge ordered India, Mongolia and the Philippines to pay $57 million in back property taxes on businesses and residences operated out of their missions. While consulate and missions are tax-exempt, Judge Jed Rakoff ruled that foreign nation must pay taxes on those parts of their facilities that are used for non-diplomatic purposes.

Under Fossella’s legislation, any foreign nation that owes New York City real estate taxes or parking fines would have 110% of that amount subtracted from their total foreign assistance package for the year. The bill is modeled on legislation Fossella drafted in 2002 to help New York City recover millions in unpaid parking fines

Fossella said, “Our laws apply equally to all people, regardless of whether the individual is a diplomat, a school teacher or a construction worker. As guests of the United States, foreign nations should show New York City the respect it deserves by following our laws and accepting full responsibility if they fail to do so. As the City struggles to close a budget gap, I believe this money could go a long way to reducing the tax burden on New Yorkers, enhancing our senior centers, improving our parks and upgrading our schools. It is my hope this legislation will spur any nation that owes the City money to do the right thing by paying their back taxes and to follow our laws.”
 
Congress passed legislation last year to withhold foreign aid from scofflaw nations, but the measure covered only the period from April 1, 1997 to September 30, 2007. Fossella’s bill would be permanent.

The legislation would also cover the Washington, DC. 

Back to Press Releases