Cape Coral Council rejects ordinances on short-term rental fees amid stakeholder concerns

The Cape Coral City Council convened on May 28, 2025, to discuss significant issues surrounding the city's tourist development tax and proposed ordinances related to short-term rentals. A key focus of the meeting was the $44 million in annual tourist development tax revenue collected by Lee County, with council members expressing concerns that Cape Coral is not receiving its fair share of these funds.

Council members emphasized the need for a more comprehensive approach to funding and regulation rather than targeting specific industries. Mayor John Doe highlighted the importance of advocating for a larger portion of the tourist tax revenue, particularly from vacation rentals, which currently contribute to the tax but do not benefit the city directly. He suggested that efforts should be directed towards legislative changes at the state level to ensure Cape Coral receives its fair share.

The discussion also included a proposal to scrap two ordinances concerning short-term rentals, which many council members felt required substantial revisions before being brought to a vote. Councilman Steinke and others agreed that involving stakeholders in the process was crucial to developing effective regulations that address both short-term and long-term rental issues. They expressed a desire to gather input from property owners and management companies to create a more balanced ordinance.

Council members raised questions about the enforcement of rental regulations and the potential impact on local taxpayers. They noted that the burden of code enforcement related to short-term rentals often falls on residents, and any fees associated with these rentals should reflect the costs incurred by the city.

In conclusion, the council decided to withdraw the proposed ordinances from the agenda for the upcoming meeting, opting instead to focus on gathering stakeholder input and revising the ordinances to better serve the community's needs. The council aims to reconvene with a more comprehensive plan that addresses the concerns raised during the meeting, ensuring that both the interests of local residents and the tourism industry are considered.