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Trump Fights D.C. for a Lower Tax Bill at His New Hotel

The city of Washington, D.C. is fighting Donald Trump's legal drive to cut his tax bills for the luxury hotel he's set to open in the Old Post Office Building next month.

The city of Washington, D.C. is fighting Donald Trump's legal drive to cut his tax bills for the luxury hotel he's set to open in the Old Post Office Building next month.

Lawyers for the city are arguing that part of the suit Trump filed in June challenging assessments related to the new hotel was brought too late and the rest was brought too soon, according to a motion the city submitted Monday asking to throw the case out.

Attorneys for the Republican presidential candidate and real estate mogul contend that the roughly $1.7 million annual tax bills for the development for 2015 and 2016 were too high because the complex was only partially completed and because the city used erroneous methods in calculating the value of the lease Trump signed with the federal government in 2013 to take over the historic Pennsylvania Avenue complex for between 60 and 100 years.

Trump's suit, filed in D.C. Superior Court, did not state or estimate what he considers a fair assessment of the value of the lease, but documents released Monday along with the city's response show that Trump's development company argued that the lease was worth about $28 million — a far cry from the roughly $98 million value the city originally applied and the $91 million assessment issued after Trump filed initial appeals.

Caroline Cournoyer is GOVERNING's senior web editor.
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