07/29/2026
Eric Feichthaler's weekly Breeze column is here, and the topic is of the highest importance. What is Amendment 3, and will it really reduce or eliminate city taxes?
Dear Mr. Feichthaler:
The news has been talking a lot about “Amendment 3”, but the details are never fully described. The pitch is that it will “eliminate property taxes”. Who could argue that, right? I have a feeling that, if passed, Amendment 3 will not eliminate property taxes, and could actually make them higher. Should my family vote for Amendment 3?
Alaina K.
Dear Alaina:
The coverage of this issue, and the debate that has ensued, is fairly intense. There appears to be two camps: Residents who feel the pain of Cape Coral property tax bills going up every year. The other side is generally local governments who recognize that this Amendment may require a radical shift in how revenue is collected. Note that I did not say there would be a radical reduction in spending, because this Amendment does not effectively restrict spending at all.
My answer to your question will, by its nature, be influenced by my 21 years of experience leading or working with city government. Throughout the history of our city, the government and city council has never had an issue obtaining funds for the projects it wants or services it provides. Amendment 3 addresses ad valorem taxes only. This is your “main” property tax bill where the tax, or “millage”, rate is applied to the taxable value of your property. During my time in office, we did not charge a fire assessment or taxes on utilities. Since then, the city has consistently moved to “diversify” its revenue streams. If those added revenue streams were removed and taxed as ad valorem, the millage rate would actually be approaching 8, over 50% more than the stated millage of 5.1 this year.
I note this because Amendment 3 will not restrict the ability to charge residents higher assessments. If this passes, I would anticipate additional assessments for road paving, street lighting, and parks, to name a few. This is in addition to the fire assessment, which now collects 100% of the expenses of our fire department. Also, for those who are paying for water and sewer assessments, or will be soon, this Amendment will not impact the expense of assessments or the ability of the city to charge them.
One negative caused by assessments that is seldom discussed is the impact on federal income taxes. Ad valorem taxes are generally deductible from federal income tax returns. Assessments for city services or for utilities expansion are NOT deductible. Also, our 100% disabled veterans who have always received an exemption from paying these taxes will now be paying them under an assessment methodology.
What does Amendment 3 mean to the typical Cape Coral Family? If passed, the base homestead exemption will increase from $50,000 to $250,000 in taxable value by 2028. This exemption will not apply to school taxes, which make up a substantial portion of the tax bill. Still, I would anticipate that Cape Coral homeowners will see some overall savings. This will not be because of reduced spending, but rather a shifting of the burden.
I anticipate that the lack of reduction in ad valorem tax plus the additional assessments will increase the costs of non-homestead properties substantially. I also expect that landlords will pass this additional expense on to renters. Every small business in Cape Coral will likely see higher costs to operate as well. Generally, I expect that these higher costs, from food to haircuts, will be passed along to the consumer. Finally, this amendment will further discriminate between families already here and new families. Although this may be legal, it is contrary to the main tenet of constitutional law that all people should be treated equally by the government. We will likely see existing residents pay very low ad valorem taxes in some cases, while others will pay substantially more for the same-valued home and the same exact services.
A key question is the timing of the exemption. To qualify for the additional exemption, residents must be homesteaded in Florida by January 1, 2027. Among other things, this means owning a home, and having your drivers license, voter registration, and all other indicia of domicile at that address. Those that move in after will wait five years to enjoy the increased exemption.
In my personal opinion and experience, this Amendment will not, in and of itself, lower budgets for the city. The only way to really acquire tax relief is to elect a mayor and council that treat tax dollars with the utmost care. In my time as Mayor, I always looked at every expenditure as if it were my own money on a cost-benefit analysis. We have a few months before the amendment appears on the November ballot. In the meantime, I encourage all residents to carefully review the language of Amendment 3, and vote based on your conclusion on what the cost-benefit is for your family and the community.
