Large tax hike doesn't deter homebuilders

FORT MYERS — A recent tax increase on new construction in Lee County didn't slow the demand for residential building permits in April.

Homebuilders pulled 136 permits for single-family homes worth $26.2 million in unincorporated Lee County in April, according to the Lee County Department of Community Development. That compares with 68 permits worth $19 million in April 2014.

Lee County Commissioners voted earlier this year to more than double taxes on new construction, also known as “impact fees.” Starting March 13, homebuilders will pay $6,131 for each new home they build, compared with $2,942 previously.

The Lee Building Industry Association says it successfully persuaded commissioners from fully reinstating the tax on new construction for at least three years. Despite the recent increase, the tax remains 45% of what it was during the boom years.