Cape Coral city officials are weighing a proposal to possibly raise the city’s one-time $35 rental home registration fee to a recurring $600 annual charge, a move sparking pushback from residents and members of the real estate community.
During a recent city council discussion, leaders framed the proposed increase as a Tourist Development Fund aimed at reinvesting in the community without burdening general taxpayers.
“This is an innovative way to almost give back to the individuals that are paying these fees, as well as the residents and tourists in general,” Councilman Keith Long said during Wednesday's meeting.
The fund would rely solely on revenue from rental registration fees, not from city tax dollars.
Nonprofit groups such as Cape Coral Friends of Wildlife expressed interest in benefiting from the fund.
“Our mission is to protect the habitat of wildlife and wildlife itself,” said Judy Mitchell, president of the organization. “Any money, any help that we can get to promote that would be wonderful. Just wonderful.”
Still, many in the real estate industry voiced concerns over what they see as a steep and sudden increase, a 1,600% jump.
“It’s not like, just gravy. Renting a property right now,” said Barbara Klare of Jones & Company Realty, who emphasized that property owners already pay taxes. “This proposed ordinance is not just about short-term rentals. It’s affecting annual rentals.”
Realtor Chelsea Defina warned the increase could have real economic consequences.
“People haven’t gotten their insurance money yet, and now we’re throwing another bill on them,” Defina said. “It’s going to have a negative impact. So a lot of realtors are getting together, and we are showing up to advocate for our community.”
Some residents questioned the city’s priorities altogether.
“As a resident, I think we have bigger issues to worry about — our schools, our workers, our crime,” said Alexandra Warman, a Cape Coral resident.
City leaders say more details will be discussed at the upcoming Committee of the Whole meeting scheduled for June 4.
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