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(NYT) — A federal appeals court dealt a setback on Tuesday to the Bloomberg administration’s seven-year effort to collect taxes on space in diplomatic missions that the city says is not used for diplomatic purposes.

A three-judge panel of the United States Court of Appeals for the Second Circuit ruled in favor of India and Mongolia, which had challenged the city’s efforts to collect more than $50 million in taxes and interest. It was unclear if the decision would affect the city’s ability to collect taxes from other countries’ missions.

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