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Trump Embroiled In Tax Battle Over New DC Hotel

REUTERS/Carlo Allegri

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Steve Birr Vice Reporter
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Donald Trump is suing the Washington, D.C. government over a tax on his new Trump International Hotel on Pennsylvania Avenue.

Trump and his team of lawyers are trying to reduce the tax bill leveled on his property by the city. The city initially assessed the lease value of the property, built at the historical Old Post Office Pavilion, at roughly $98 million. Trump appealed the assessment and officials reduced it to $91 million, but he lost a second effort to reduce the value further, reports Politico.

Trump’s lawyers opened an electronic file in D.C. Superior Court this week, the first step in opening another suit against the District.

The Trump International Hotel is set to open in September, but Trump’s team will have until September 30 to take the next step and sue the city for another reduction in the property value. It remains unclear if Trump will follow through as it could distract from his presidential aspirations, reports The Washington Post.

The city recently reviewed the tax status of the property. The District can potentially add new taxes on a property when 65 percent of construction is complete. Trump’s lawyers are currently contesting the “supplemental assessment” to a city panel.

The tax bill on his new property has been roughly $1.7 million in 2015 and 2016.

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