Condo owners with bad drywall may get no tax break

Florida's condominium and townhome owners with tainted drywall may be excluded from tax relief promised in a new law.

The Florida Department of Revenue said Wednesday that deep tax breaks only belong to owners of traditional homes.

"The department doesn't think the law was meant to cover any structure other than detached, single family homes," said Robert Babin, legislative affairs director for the department. "There is a statutory provision that defines single-family differently than other types of homes."

This comes after the governor's office said Monday that condos and townhomes would qualify for the help. The office has since said it made a mistake.

The law, passed earlier this month, says owners of single-family homes who cannot live in their houses because of bad drywall won't have to pay a penny of property tax on the home's value. (The owner would still be responsible for taxes on the land.)

Some municipal property appraisers had asked the department for clarification because they thought the language in it was confusing. Even legislators who sponsored the bill have said they wanted anyone with the drywall to get the tax break.

But Babin said the bill wasn't written that way. Individual property appraisers, however, still have the opportunity to lower the appraised value of the home because of the bad drywall, he said.

If that's the case, though, why are townhome and condo owners being left out of this law, asked Rob Turner, Hillsborough County's Property Appraiser.

"We have more condo and townhome owners affected than single-family owners," Turner said.

The controversy is ironic, considering the reason behind the law. Legislators sought a uniform tax cut for those with tainted drywall. Apparently, property appraisers in some Florida counties were offering varying tax breaks or nothing at all.

Hillsborough County offered homeowners a break of up to 50 percent on the value of their homes.

Senator Ronda Storms, R-Valrico, sponsored the bill and said property appraisers "can be helpful if they want to" and that the Department of Revenue has no authority to control property appraisers.

"Their opinion is just that, it's not a directive," she said.

But Turner isn't so sure.

"Well, I can tell you they're in here every year auditing us," he said. "They issue bulletins on laws, and there is an expectation that property appraisers will review and apply those standards."

The U.S. government is still investigating Chinese drywall, but recommends affected homes be gutted and rebuilt with domestic drywall, a project that builders say can cost about $100,000.

The drywall emits a corrosive gas that destroys appliances, air conditioners and anything metal. Some homeowners also think it causes health problems.

Some builders are fixing the problem, but others are not.

Turner said he's still hoping for more clarity.

"We've got several action plans poised and ready to go, but I'm afraid to act because the same day we could get a totally different opinion on this law."