Proposed property tax cuts in Cape Coral could impact city services

CAPE CORAL, Fla. —

Florida lawmakers are considering major property tax cuts for homestead homes, which could lower homeowners' tax bills but also remove tens of millions of dollars from Cape Coral's budget unless the state replaces that money.

“Well, I am a homeowner. Sometimes you have to rob from Peter to give to Paul, right?” said a local resident, highlighting the dilemma faced by homeowners.

About 44% of all properties in Cape Coral are homestead, making up about 40% of the city's taxable value and creating over $62 million in property tax revenue. These taxes pay for essential services like the fire and police departments, which would need alternative funding if property taxes are reduced.

“I mean, who doesn't love getting your taxes taken away, right? However, it might take from other programs like the police. And, I certainly don't want that. I like security, which is obviously the most important thing to me personally,” said Frankie, expressing concerns about potential cuts to vital services.

If the state does not replace the lost revenue, the city has discussed realistic options to make up for the lack of revenue, such as raising fire service assessments, increasing local sales taxes, and possibly increasing the property tax rate on remaining taxable property.

Manny Rodriguez of Cape Coral said, “I believe the tax, the property tax to me is going to be a waste because I mean assessments and other things will go up. So we're not going to have a break. And especially with all the buildings we have here in Cape Coral is going to go up more. The traffic is going to get more and it's going to be more of a hassle.”

The hard reality for the city is the overall effects it could bring to its everyday resources, as police, fire, parks, roads, and other services will still cost the same to run even if property taxes go away.

DOWNLOAD the free Gulf Coast News app for your latest news and alerts on breaking news, weather, sports, entertainment, and more on your phone or tablet. And check out the Very Local Gulf Coast app to stream news, entertainment and original programming on your TV.