Cape Coral homeowners could see relief and new fees under exemption plan

CAPE CORAL, Fla. (WINK)—City leaders are weighing budget choices as a proposal to expand Florida's homestead exemption could cut millions in local revenue.

The Cape Coral Sports Complex is one example of a city facility people use all the time. While city leaders look at a potential multimillion-dollar hit from expanded homestead exemptions, they're also talking about how parks, public safety and other services keep getting paid for.

Homes stretch as far as the eye can see from the Cape Coral skies. That's exactly why the homestead tax exemption debate matters here.

"Finding that $46 million is definitely doable," Councilwoman Lastra said.

That $46 million is the city's estimated year two revenue loss if the expanded homestead exemption moves forward and the state does not replace the money. The city's budget materials list options like moving the fire assessment to full cost recovery, raising local sales tax or increasing the millage rate.

"Figuring out where we can tighten and where we can come up with innovative solutions for things paying for themselves," Lastra said.

For Cape Coral homeowner Aohn Giraldo, any talk of property tax relief gets his attention. "All I seen in the past six years that I've been here is just taxes keep going up," Giraldo said.

Giraldo said tax relief only works if the city doesn't fix one bill by raising another. "End of the day, we still paying either we do it, you know, every year, or we do payment plan," he said. "At the end of the day, it's gonna be the same."

City leaders said they're already looking for ways to get ahead of this potential problem. For now, without state replacement money, the math doesn't add up.