Real Estate Law | Explaining ‘assessments’ on your tax bill
Mr. Feichthaler:
This week, I received a “Notice to Property Owners” from the city of Cape Coral about several proposed charges. I am a new resident and can’t make heads or tails of this. It says it is “not a bill,’ but appears to be gearing up to send one! Is this my proposed property tax bill, or something else?
Melissa C.
Dear Melissa:
All property owners will receive two different notices in the mail if they own real property: The first is the “TRIM” notice that advises of proposed ad valorem taxes, based on the taxable value of your home, business, or vacant land. The second is the notice you refer to, which is a summary of charges for specific city services that apply to your property. My response today will be limited to the contents of this, the non ad valorem bill.
The first charge is the Stormwater charge, which is charged to each property (including condominium units). Typically, this is based on the number of square feet a parcel has, and is charged at $163 per ERU or “Equivalent Residential Unit”. Stormwater fees go towards swale maintenance, canal maintenance, and other facilities designed to keep us from flooding from rain. Our stormwater system provides no protection from storm surge, as we learned during Hurricane Ian, but it helped a lot to quickly rain the water once the tide subsided. This charge has increased over 25% since 2021.
The second charge is for solid waste, aka Garbage. This charge is now over $300 per residential household, and is allocated solely to garbage collection, including recycling and horticultural waste removal.
The third charge is for the Fire Protection Assessment. Charges for fire protection have historically been part of the ad valorem tax bill, but was removed from the main bill several years ago when the city millage was approaching the constitutionally set cap of 10 mills (or 1% of taxable value). The fire assessment has two components – Tier 1 is charged as a flat rate to every property, whether a building exists or not. Tier 2 is based on the value of the building located on the property. The fire assessment has increased over 110% in the past five years.
Finally, for vacant properties, the city charged a fee for lot mowing. Like the stormwater assessment, lot mowing has been compelled by the city for many years so that vacant lots are not overgrown. Individuals that own vacant lots and maintain them on their own can request the city remove this charge, and this service. The fees are dependent on what are of the city the vacant lot is in. The more densely populated the area, the higher the lot mowing charge per year. This charge has increased over 28% over the past five years.
As noted on the back of the notice, the city will have a public hearing on Aug. 26 at 4 p.m. relating to these charges. If you are subject to the water and sewer assessment, this is a separate assessment from the notice you received.
All of the above charges are in addition to the property tax bill TRIM notice that is on its way to all property owners in Cape Coral. In some cases, these assessments exceed the ad valorem property tax itself. The days of comparing millage rates year to year to determine government efficiency and spending is long over. Although the city millage rate may stay constant, the consistent increases in these assessments have resulted in a significant increase in spending. I noted in my column last month relating to the Property Tax Amendment that city government is likely to rely heavily on these assessments if the amendment passes.
Bills that include all taxes and assessments will be mailed in late October. For those who are able, there is an “early payment” discount of 4% when taxes are paid in November.
For those of you with children in our local schools, I hope back-to-school time this week was a happy one. Please take care and drive safely when driving through residential neighborhoods, near schools, and anywhere children could be.
Eric P. Feichthaler has lived in Cape Coral for over 38 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Cape Coral 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, and serves as President of the Cape Coral Kiwanis Foundation. He has been married to his wife, Mary, for 25 years, and they have four children. He earned his board certification in Real Estate Law from the Florida Bar, and practices in real estate law, estate planning, and wills and trusts. 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. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.