Homesteaded homeowner concerned with big tax increase
Mr. Feichthaler:
I bought my home last year and immediately applied for homestead. I received my TRIM notice in the mail and it shows my assessed value going up double! I thought we were capped at 3% increases with homestead? Now, my tax bill appears set to nearly double from last year. This can’t be right!
-Mike S.
Dear Mike,
Over the past week, hundreds of thousands of TRIM (Truth in Millage) notices were sent to property owners throughout Lee County. This required notice is designed to give taxpayers a “heads-up” on valuation, proposed tax rates from the many taxing districts (14 for Cape Coral), and information on where and when public hearings will take place where the final tax rates are adopted.
First, taking a look at valuation, homesteaded homeowners do have a cap on the increases in assess-ed value of 3%. However, when a home is purchased, the cap is removed, and the new owner starts “fresh” the following year. It sounds like you paid 2021 taxes based on the valuation and cap enjoyed by the prior owner. This year, your assessed value, especially with the notable increases in value, likely rose due to the removal of the cap.
The notice also provides information on how to protest the market value calculation. Our tax appraiser has an excellent track record of getting valuations correct, but with hundreds of thousands of parcels that require assessment annually, mistakes can be made. This is particularly true for commercial parcels, as different approaches to valuation can be used to determine value. You can make an informal inquiry following the instructions on the form if you feel your property is being unfairly valued.
One thing to keep in mind is this notice only applies to ad valorem property taxes, which are based solely on the valuation of property. The city of Cape Coral also collects taxes by other means through the property tax bill, most notably Fire Assessment, Garbage Fees and Stormwater. If you live in an area that has received water and sewer utilities over the past 20 years, you likely also have an assessment for those items as well. You can expect a total bill significantly higher than the amount shown in “Column 3”.
In future years, your taxable value should be capped for homestead, and you will likely see consistency in future tax bills. Make sure the bill notes that you are receiving the homestead exemption. If it does not, contact the property appraiser to find out why it isn’t applying to your property.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.