CLEVELAND -- The Cavaliers have a tax problem and it could further restrict their already limited options in free agency in July, such as re-signing Kyle Korver.

Teams can begin negotiating with free agents on Saturday and sign them July 6. For months, multiple sources have told cleveland.com that the Cavs would like to keep Korver, and he has said he would like to stay.

But if the 36-year-old sharpshooter who led the NBA in 3-point shooting percentage this season gets a big offer on the open market, the Cavs could hesitate to match because of their soaring costs from spending above the luxury tax line.

That hesitation could also come with a price. LeBron James, who can be a free agent after next season, returned to Cleveland on a promise from majority owner Dan Gilbert to spend what is necessary to win. Gilbert has done that to this point, though it appears further spending is required to match nemesis Golden State.

James is watching to see how the Cavs approach the roster this season. When he opts out of his deal next summer, he could command a five-year, $209 million contract from Cleveland.

Now, for Gilbert's tax issue.

The final tax bill for the 2016-17 season is not yet due, but the Cavs will owe an estimated $24.8 million on the roughly $15 million they spent on player salaries above the $113 million tax threshold (the NBA's salary cap was $94.1 million).

Since James returned to Cleveland and the Cavs traded for Kevin Love in the summer of 2014, all while handing Kyrie Irving a five-year, lucrative extension, the organization has spent above the tax threshold in each season.

That makes them a "repeater" team, which means the Cavs will have to pay an even higher rate for every dollar over the tax line they spend on players.

As it stands today, Cleveland's payroll for next season is about $128 million for the 10 players under contract. The projected salary cap is $99 million and the projected tax line is $119 million. So if Gilbert said, you know what, we're going with 10 guys next season instead of 15, he'd owe an estimated $29.75 million in taxes in July of 2018 because of a payroll that's $9 million over the tax threshold.

For every dollar Gilbert spends above the $128 million he's already committed to for next season, he's going pay roughly $3.88 in taxes -- until the payroll hits $139 million. Every dollar above $139 million will cost Gilbert $4.75 in taxes (which increases by 50 cents every $5 million).

Because Cleveland is (way) over the salary cap, the team is already limited in what it can offer most free agents.

The Cavs can offer the veteran's minimum (up to about $1.6 million, depending on years of service), and have the taxpayer's mid-level exception to the salary cap worth $5.1 million. They have one trade exception worth $4.8 million and another worth $2.2 million.

Korver is the only free agent on the team the Cavs can pay above $5.1 million in a new contract next season because they have his full "Bird" rights.

Cleveland can only offer its other free agents -- James Jones, Deron Williams, Derrick Williams and Dahntay Jones -- minimum contracts or use the mid-level exception, which is all they can offer free agents outside the organization, too.

For instance, if Carmelo Anthony or Dwyane Wade were to become free agents, the most either could earn from the Cavs is $5.1 million this season.

Korver made $5.2 million, and it's hard to determine what the market will be for him until the free-agent contracts start flying in a few days.

But, depending on who lands where, contenders like the Celtics and Spurs, and up-and-comers like the Nuggets, Timberwolves, Heat and Sixers all have cap space.

Coming off his first Finals appearance, Korver's best chance to get back and maybe win a title would be to re-sign here. But he has to weigh what those odds against what he can earn on the open market in what will probably be his last contract.