Naples residents whose property values increased this year will pay higher taxes to the city under a proposed $144 million budget endorsed by the City Council on Monday. The council gave preliminary approval to maintain the property tax millage rate at its current level, meaning taxes will go up with increased property values. The city expects just over $2.1 million in new property tax revenue.
Elected official Finlay wanted to give back lessen the tax impact by lowering the millage rate. “You’re giving back just a little of the increase — just a portion,” Finlay said about his proposal to lower the millage rate from 1.18 mills to 1.15 mills. He said he wanted to return tax dollars to the residents because “governments waste money.” The higher tax bills would be especially burdensome for the city’s large share of seasonal residents who own property but don’t qualify for a homestead exemption, which caps annual property value increases at 3 percent for tax purposes.
For those nearly 14,000 commercial and residential properties without a homestead, taxes will increase as property values increase, up to 10 percent — the annual cap set by the state. That means that a non-homesteaded $1.2 million home, paying $1,416 in property taxes in the current year, will pay $1,558 in property taxes next year if the home value increased a maximum of 10 percent. The city has kept its millage rate at 1.18 mills for the past seven years, despite a steady increase of taxable values from $14.9 billion in 2011 to its current total of $20.2 billion. This information was taken from an article in the Naples Daily News published on August 16, 2016.