The election results are in. On the one hand, voters decided to cap tax increases, on the other hand they decided to increase taxes.
Voters approved Amendment 2. The current 10% cap will remain (for details, see our post). This is GOOD NEWS for out of state property owners. Annual property tax increases are capped for existing owners, and buyers have a better basis for future cost calculation.
Voters also decided to INCREASE our sales tax from 6% to 6.5%. The additional revenue goes to the school district. The tax increase was highly contested and passed with 51.5% of the votes.
Currently, vacation rentals are taxed at 6% sales tax and 5% tourist tax, so 11% altogether. Beginning in 2019, total taxes on vacation rentals will be 11.5%.
What does this mean for our guests? Our vacation rentals will get a little more expensive. For example, for a $2,000 rental we currently have to charge taxes of $220. In the future, we have to charge $230.
What does this mean for us? Our calculation programs and booking documentations have to be changed. We have to find out, whether we have to update all existing bookings for 2019 and 2020 to reflect the new sales tax rate. We will change everything after we get the official information.
54% of Cape Coral voters also approved a $60,000,000 bond, mostly for parks. The amount shall accelerate realization of the City's masterplan (click here). According to estimates, the bond will cost property owners about 4 mills. (.04%). Example: A property valued at $1,000,000 would see a property tax increase of $400. This is a calculation tool for your property.
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