Cape Coral, Lee County leaders warn $250K tax exemption could gut services

CAPE CORAL, Fla. (WINK) — Lee County commissioners are asking state lawmakers to reconsider a major increase to Florida's homestead tax exemption that could cost local governments millions of dollars.

Commissioners voted to send a letter to the Lee County Legislative Delegation pleading with them to rethink the proposed change. Although it is not a done deal, the measure would raise the homestead tax break from $50,000 to $250,000.

"This is like doing a remodel where you're removing the load-bearing wall, but you're not replacing it with anything," Lee County Commissioner Brian Hamman said.

Lee County estimates the change could cost them about $130 million in the first year alone. Cape Coral leaders estimate a loss of about $47 million each year, money that goes toward things like public safety, parks and transportation.

"Yes, lowering property taxes is a good thing, but at what cost?" Shelton Weeks stated.

Weeks is the director of the Lucas Institute for Real Estate Development and Finance at FGCU. He said if voters approve the measure in November, local leaders may have to face tough choices.

"At the end of the day, it's a shifting of how we're going to pay for things, so we're going to shift the burden from one set of property owners to another," Weeks said. "You are either going to have to replace the revenue or cut back services."

WINK News spoke with homeowners in Cape Coral who get the tax break. They said the idea of lower taxes sounds great, but they want to know where the difference will be made up.

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"At first sight it seems like a great idea, who doesn't want to pay less, right?" Cape Coral homeowner Gjovani Doci said. "But at the same time, everything has to be taken into consideration, because with everything that sounds great at first glance, there's always some negatives that come with it."

"I don't think they want to take away all the funding, but if they could lower a small amount of property taxes, that would be, you know, helpful for everyone," Cape Coral homeowner Jason Garner said.

Voters will have the opportunity to decide on the measure in November.