Cape Coral leaders warn of impacts from state property tax changes

CAPE CORAL, Fla. — Cape Coral city leaders are raising concerns over proposed changes to Florida's property tax system. These changes could lead to significant budget cuts impacting taxes, schools, parks, and fire services.

Cape Coral city leaders reviewed several state-level proposals that could dramatically change how local governments are funded. These proposals focus on reducing or eliminating homestead property taxes while ensuring law enforcement funding remains secure.

"People, I just think, need to understand what this could look like for our city," said Jennifer Nelson-Lastra, Cape Coral City Councilwoman.

Property taxes are the city's main source of revenue, funding essential services like police, fire, roads, parks, and other city services. One proposal would eliminate city property taxes on homesteaded homes almost immediately, while another suggests phasing them out over a 10-year period.

"You know, we don't really know where this is going to shake out at the end, something that we definitely need to monitor," said Mayor John Gunter of Cape Coral.

City staff emphasized that these are state-level proposals beyond the city's control. If approved by voters, Cape Coral would need to make changes to its budget.

"We need to have some sort of community awareness campaign so that our residents are being educated now on what the ramifications could be," said Nelson-Lastra.

If the state does not replace the lost revenue, fees could increase, taxes could shift, and services might face cuts, a scenario Councilman Derrik Donnell is keen to avoid.

"History is repeating itself. I hope that someone would say something to help us, because if not, we're right back to where we were in 2007, 2008. The decision is going to be ours," said Donnell.

These proposals are still moving through the Florida Legislature and would ultimately need voter approval in November of 2026.