Cape Coral tax plan: Watch your wallet

We'll probably never know if Hertz ever considered relocating its corporate headquarters to Cape Coral, but the city in Lee County isn't exactly laying out the red carpet for new businesses or residents.

Hertz recently picked unincorporated Estero in south Lee County to relocate its corporate headquarters from New Jersey.

Meanwhile, across the river, the Cape Coral City Council recently approved a new 7% public-service tax on electric bills in exchange for a slight reduction in the property tax millage rate. On top of that, a consultant hired by the city has suggested the city needs to impose an undetermined “fire services assessment.”

So it's understandable why a recent meeting of the Cape Coral Construction Industry Association with City Manager John Szerlag became heated over the issue. Builders wondered why the city would impose new taxes at a time when the economy is finally recovering from the real estate crash.

Rightly so, builders were skeptical of promises that the taxes will help pay for necessary city services. And they assailed the relatively high taxes the city continues to impose on new construction, also known as “impact fees.”

Szerlag told the gathering that lowering taxes on new construction hasn't been considered. “I couldn't recommend waiving impact fees not knowing what the alternative revenues might be,” he told the visibly agitated group.

We've heard enough government consultants and politicians promise tax solutions for ailing public finances. When that happens, we only have this advice: Watch your wallet.