Every property within Lee County pays an Ad Valorem tax annually within the property tax bill that comes out every November. For just Cape Coral the “Total Taxable Values” increased this year 9.57%, over last year. What is an Ad Valorem tax? What does this increase mean to homesteaded owned property? How does it affect my taxes. Ready More……..
First a bit of definition of Ad Valorem tax. Ad Valorem taxes are collected and used to operate the city for its general funds. It is the single largest revenue source of funds to pay for the city operating expenses. Examples would be funding for police, public works, administrative staffing, fire dept., parks & recreation…etc.
The total taxable assessed values of property has risen to $13.9 billion for fiscal year 2018. Last years taxable value was at $12.04 billion…….now up 9.57%. Hold on a minute, that does not mean your taxes are going up next year by over 9%. With a 3% tax cap rate, mandated by law, you will never see a 9+% increase in property taxes. For 2018 year, the increase in taxable values will be 2.1%. For example, a homesteaded property with an assessed value of say $100,000 will see the property value rise to 102,100, for 2018 tax year.
Remember the 3% cap rate only applies to owner occupied homes with homestead exemption in place. So it is important to file for that, once you purchase a home to be used as your permanent residence.
So, Your home value goes up once again for the 6th straight year. Yes, your taxes will increase a bit, but I would rather have that, so it creates equity in the home, rather than a negative value trend. So its kind of a tag along….as the value of your home goes up, a small increase will tag along behind. It means our local economy is continuing to grow, and the needed tax revenue to pay for general services.