The money has to come from somewhere
To the editor:
I am disappointed with the lack of accurate information on the effect of implementing a $150K and $250K homestead exemption.
First the Save our Homes website is giving incorrect information. If you have a home with a value below the Cape Coral medium home value, and have lived in it for 10 or more years, the site is showing you will pay no ad valorem taxes. That is false. You will still pay school taxes (by both local board and state). For most people that is about 45% of your ad valorem tax burden.
Next the city will need to find revenue to pay for essential services like police and fire. With the loss of tax base, the only option to pay for essential services is through a non ad valorem tax. About 81% of the cost of fire is now paid through a non ad valorem tax. It is NOT reasonable to assume the city can reduce that. We should expect the non ad valorem fire tax to increase to cover the shortfall. The fire and police have about equal annual budgets. To replace the lost revenue for the police I assume the city will add a non ad valorem police tax, if allowable. Non ad valorem tax fees are flat taxes not based on property value. For 2026 Cape Coral is estimating the average home will pay $530 Fire Assessment Fee. Should the $250,000 homestead exemption become law, we should expect a non ad valorem police tax of about $500 or more.
The substantial ad valorem tax fees on a Cape Coral tax bill are: Lee County, School tax by Local district, School tax by State law and City of Cape Coral.
Now look carefully at last year’s tax bill. For most modest homes with several years of homestead exemption increase capped at 3% their City of Cape Coral tax (based on assessed value) is MUCH LOWER THAN $530. You will still owe the two school taxes.
Lee County will need to pay the Sheriff’s Office and they can do that with a non ad valorem tax. Since Cape Coral homes historically have been less expensive than most of the rest of Lee County, you can expect Cape Coral to pay a disproportionate non ad valorem tax. In addition the county needs general revenue, and it is possible some of that will come from increased sales tax and tolls.
I believe the added exemptions will save taxes for homes worth more than the median, but increase taxes for those below. Especially hard hit will be low-income seniors because they do not receive relief from non ad valorem taxes
On a final note: How will Mosquito Control afford to exist? We cannot survive without Mosquito Control.
Steve Szumlanski
Cape Coral