Court Hears Arguments on UN Tax Exemptions

First, it was unpaid parking tickets. Now, the dispute between New York City and United Nations diplomats is centering on whether foreign countries should pay taxes on the apartments where they house their diplomatic workers.

The Supreme Court justices heard arguments today from the city's lawyer, Michael Cardozo and from attorneys for India, Mongolia, and the State Department.

They say the countries should be immune from such lawsuits and from having to pay property taxes on staff apartments. Cardozo says embassies should be exempt, not private apartments, and foreign countries should not be allowed to flout local tax laws.