Identifier
Created
Classification
Origin
08USUNNEWYORK98
2008-02-04 20:39:00
UNCLASSIFIED
USUN New York
Cable title:  

NYC WANTS TO COLLECT PROPERTY TAX ON BULGARIAN

Tags:  OFDP BU UN 
pdf how-to read a cable
VZCZCXYZ0008
RR RUEHWEB

DE RUCNDT #0098 0352039
ZNR UUUUU ZZH
R 042039Z FEB 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 3654
INFO RUEHSF/AMEMBASSY SOFIA 1263
UNCLAS USUN NEW YORK 000098 

SIPDIS

SIPDIS

DEPT FOR IO/UNP; L/DL

E.O. 12958: N/A
TAGS: OFDP BU UN
SUBJECT: NYC WANTS TO COLLECT PROPERTY TAX ON BULGARIAN
STAFF RESIDENCE


UNCLAS USUN NEW YORK 000098

SIPDIS

SIPDIS

DEPT FOR IO/UNP; L/DL

E.O. 12958: N/A
TAGS: OFDP BU UN
SUBJECT: NYC WANTS TO COLLECT PROPERTY TAX ON BULGARIAN
STAFF RESIDENCE



1. Unclassified - entire text.


2. Bulgarian Minister Plenipotentiary Branimir Zaimov called
on USUN Host Country and Legal Officers to describe two
meetings between his Mission and the City of New York, which
wants to negotiate a settlement with the Mission on USD 35
million it says Bulgaria owes in back property taxes,
penalties and interest on the Mission's staff residence on
East 86th Street in Manhattan. The City's Deputy
Commissioner for the United Nations has asked Bulgaria to
make a settlement offer quickly, failing which the City would
take the mission to federal court. Zaimov said the GOB will
not authorize the Permrep to negotiate a settlement, but
instead instructed the Mission to meet with USUN on this
issue. The Bulgarian Embassy in Washington has reportedly
been instructed to raise the issue in the Department as well.


3. The building contains fifteen apartments, thirteen of
which are occupied by diplomats and staff of the Permanent
Mission. The other two apartments serve as the residences of
officers from the Consulate General. In a January 9
diplomatic note sent by the Bulgarian Mission to the New York
City Commission, the Mission states "The position of the
Permanent Mission of Bulgaria on estate (sic) taxes on
property owned by foreign states or diplomatic missions is in
conformity with international diplomatic law and practice, as
well as the US Government's practice. In the conduct of
their bilateral relations, both Bulgaria and the U.S.
Government have always abided by the overriding principle
that the conduct of diplomatic relations should be tax-free
and not a basis for treasury-to-treasury transfers (Ref
Diplomatic Note No. 199 by the Embassy of the USA in Sofia
from June 5, 2001)". In closing, Zaimov opined that the
Department of State should be actively protecting, in writing
to the City, the interests of his Mission and other UN
Missions in New York that find themselves in a similar
situation. Zaimov added that neither the Bulgarian Government
nor Bulgarian public opinion distinguishes between New York
City and the federal government in this regard, and at some
point in the near future backlash could possibly turn severe.

KHALILZAD