Trump has been cited by Palm Beach officials for hoisting a large American flag atop an 80-foot pole outside his lavish Mar-a-Lago estate and club.
Town officials said the real estate mogul has violated zoning codes by putting up a flagpole taller than 42 feet, for not obtaining a building permit, and for failing to get permission from the landmarks board.
Trump has until Nov. 27 to apply for the necessary approvals or face a Dec. 21 code enforcement hearing that could result in $250-a-day fines.
"You don't need a permit to put up the American flag," Trump said Tuesday. "The day you need a permit to put up the American flag, that will be a sad day for this country."
Trump said it is too soon to comment on how he will respond to the threat of fines.
Lee Hanley, vice chairman of the town's landmarks commission, previously said the 15-by-25-foot flag makes the town look like "we have an Okeechobee car dealer," referring to a strip of auto dealerships along Okeechobee Boulevard in West Palm Beach.
Trump responded in a letter last week saying that "anyone who objects should not, in my opinion, hold a public office of any kind — at least not in this country."
The flag appeared outside the Mar-a-Lago estate on Oct. 3.