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Trump Trying To Duck Taxes On New D.C. Hotel Project

Where: 1100 Pennsylvania Avenue NW [map], Washington, DC, United States, 20004
January 9, 2013 at 9:43 AM | by | ()

We told you earlier this year that Donald Trump has designs of opening a hotel in Washington D.C., in one of the city’s beloved landmark’s, the Old Post Office.

Well, now he doesn’t want to pay taxes on the property, which could delay the project. The Old Post Office is a federal building, so property taxes aren’t required, but possessory interest tax--established in 2000 to tax companies operating on federal land—are still in order.

According to The Washington Business Journal, The Old Post Office's tax bill could start at $3 million a year. The article said Trump has been trying to get unspecified "relief" on the tax from the city—so far to no avail.

The project, headed up by daughter Ivanka, has increased in scale with the development team now wanting to add more restaurants, luxury suites and a new mezzanine level in the building. However, because the building is a historic structure, it’s not sure whether these additions will approved—which may be why The Donald is being difficult about paying his bill.

Should Trump back down and decide to pony up, construction on the hotel is said to begin in 2014 with a projected 2016 opening date.

[Photos: The Trump Organization]

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