Cape Council gets update on proposed property tax legislation
Cape Coral City Council received an update on legislation that could impact property taxes Wednesday.
Assistant City Manager Mark Mason said the measures are crawling along through committees.
“Many of the House Joint Resolutions are still within committee,” he said at council’s budget workshop.
The two most active bills are House Joint Resolution 203, which would phase out non-school property taxes with an additional $100,000-a -year exemption over 10 years for homesteaded homes, and 213, which would modify limitations on assessment increases for both homestead and non-homestead property.
Mason said both are on the House calendar for the second reading. If a measure goes to the third reading, the House has the option to move forward, or reject.
“Both have been amended twice,” Mason said.
In addition, Mason said there are two added proposals, House Bill 789, which is ad valorem tax levies, and 903 which would reduce the maximum percentage that the assessed value of non-homesteaded could increase annually from 10% to 3% effective Jan. 1, 2027.
Council recently returned from Tallahassee, with some sharing their thoughts.
Councilmember Joe Kilraine said they did not hear a consensus going anywhere on any of the bills.
“Each person we talked to had a little bit of a different take. They seem to feel the governor will make sure something got through, but none knew what it might be,” he said. “They felt the Senate was dragging on a little bit – hung up with the Senate.”
Mayor John Gunter said there is a disconnect between the Senate and the House.
City Manager Michael Ilczyszyn provided some ways a reduction, or the elimination of property taxes could impact the city.
“Two days ago, I had a discussion with the executive director of the West Coast Navigation District,” he said.
Ilczyszyn said they have been a sub recipient of grants for such things as public safety boats, marine enforcement, dredging, channel markers and boat ramps.
“The discussion from the executive director was sobering,” he said, adding that if property taxes were to be eliminated, they would be shut down. “The only way they collect money is through ad valorum taxation – even further downstream effects not being paid attention to.”
Council heard a presentation during a recent workshop as to what kind of impact the elimination could have on the city’s budget.
The scenarios ranged from severe cuts on how the city operates, to minimal.
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