Column: Tainted drywall tax relief confounds property appraisers

A new law designed to give a tax break to struggling homeowners with Chinese drywall may come with some unintended consequences.

Legislators sought a uniform, deep tax cut for those with bad drywall. But some interpretations of the law may leave out condos and townhomes and anyone forced to live in their home, despite the sulfuric gas coming out of their walls.

The law's wording is confusing and may rely too heavily on the interpretation of Florida's individual property appraiser offices. Appraisers across the state already have differing views about how to apply the law, said Rob Turner, Hillsborough County Property Appraiser.

"The bill was poorly written," he said. "Some appraisers will be lenient; some will be strict."

The way legislators see it, homeowners with Chinese drywall shouldn't be further burdened by taxes on the home. The new law requires property appraisers to bring the taxable value of such a home to $0. (The owner would still be responsible for taxes on the land.)

Before the law passed, some property appraisers were offering tax breaks to those with the drywall, but it was up to the appraiser. Hillsborough County recently offered a break of up to 50 percent on the value of the home.

The Legislature wanted the break to be fair to everyone.

"We found that some appraisers were helping homeowners and lowering the taxable value by as much as 80 percent, while others didn't offer anything," said Senator Ronda Storms, who sponsored the bill. "We wanted there a uniform standard across the state."

Storms said legislators heard from voters angry that some counties received more help than others.

Home values have plummeted, and some can't sell at any price because buyers don't want the headache of having to replace drywall. Experts estimate it costs, on average, about $100,000 to fix the drywall problems.

One of Turner's big problems with the law is that says it's for single-family homes. Most of the problems reported in Hillsborough County, he said, are in condos and townhomes. Does that mean those folks shouldn't get the help?

Also the bill states that the home has to be in such bad condition that it cannot be used without remediation.

Well, Turner says, a lot of people with the tainted drywall have no choice but to live in their homes, even it they shouldn't.

Homeowner's insurance policies don't cover drywall replacement, and many people can't afford to rent somewhere else because they're still responsible for their mortgages.

"Some of these people spent their savings on their home," Turner said. "They have no where else to go."

The U.S. government recommends anyone with Chinese drywall move out of the house until the drywall has been replaced.

Homeowners complain that the drywall emits a corrosive gas that destroys appliances, air conditioners and anything metal. Some believe it also causes health problems such as trouble breathing, headaches and itchy eyes.

Turner said he wants to give homeowners the full 100-percent discount but needs to know that's covered under the new law.

He said he plans to ask the governor, who signed the bill earlier this month, for clarification. He's talked with some property appraisers around the state, and some, he said, plan to go strictly by the wording of the bill while others plan to be more lenient.

Storms said the Legislature will change the wording if they have to, but she doesn't think it will be a problem. She acknowledged that the wording may be confusing but said property appraisers are able to make their own decisions on how to handle it.

"This would be up to the property appraiser," Storms said. "If he wants to be helpful, he will be."