Donald Trump
Former US President Donald Trump leaves Trump Tower in Manhattan on July 19, 2021.
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  • An Illinois tax agency ruled last month Trump's Chicago skyscraper was over-assessed in 2011.
  • The ruling means Trump is owed a $1 million refund, but local officials filed a lawsuit to stop it.
  • The refund would come out of property taxes owed to the city and other agencies, including Chicago Public Schools.
  • See more stories on Insider's business page.

Former President Donald Trump is owed a tax refund of $1 million for his Chicago skyscraper, but local officials are trying to stop it from being issued.

An Illinois tax agency ruled last month that Trump paid too much on his 2011 tax bill after the value of Trump International Hotel and Tower's rooms and retail space was over-assessed by the Cook County Board of Review, the Chicago Sun-Times reported.

The ruling by the Illinois Property Tax Appeal Board means Trump is owed $1.03 million, which would come from property taxes due to the city and other government agencies. Chicago Public Schools would lose out on about $540,000, according to the Sun-Times.

The Cook County State's Attorney's has since filed a lawsuit to block the refund. When reached by Insider, the State's Attorney's office said it was unable to comment on pending litigation.

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The dispute is the latest development in the story of Trump's taxes in Chicago. Alderman Ed Burke, the longest-serving member of Chicago's City Council in history, served as Trump's lawyer for more than a decade. His firm originally filed the tax appeal arguing the value of Trump's building had been overestimated.

Burke, a Democrat, helped Trump secure $14 million in tax breaks on his Chicago skyscraper before parting ways with Trump's company in 2018, The Chicago Tribune reported.

Later that year, the FBI raided Burke's City Hall office and he was later charged with racketeering, bribery, and extortion, among other charges.

Prosecutors say Burke used the power of his office to drive business to his law firm, including blocking permits for people who did not hire them. He has pled not guilty to all charges, WTTW reported.

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