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Chinese Dry Wall...Are You Entitled to a Tax Relief?

By
Real Estate Agent with eXp Realty

Kitchen1

About two years ago we realized that defective or tainted dry wall from China (Chinese Dry Wall) posed a health risk for home owners. Additionally this refers to dry wall that were not only directly imported from China, but that may have been manufactured in China by US branded companies.

If you own a rent a home that contained Chinese Dry Wall you may have been exposed to various respiratory illnesses including bloody nose, and itchy skin and eyes. Hopefully, you were made aware of this and took the necessary precautions in regard to you and your familys' health.

Today HB 965 was signed into law by Floridas' Governor Charlie Crist. This Bill will provide temporay tax relief to some property owners that were affected by Chinese Dry Wall.

To determine if you qualify for the temporary tax relief; an appraisal is done on your residence. If it is concluded that the property contains drywall that is affected with high levels of elemental sulfur where certain metals are corroded, and it can only be remedied by destroying or getting rid of the affected wall or walls in order for the building to be brought to current industry standards; you may very well qualify.

The appraiser takes the assessed value of the property and takes the present impact into consideration.The value of the building will be assessed at $0 if the building is unable to be used as intended without repair. However; the land will retain it's value.

Under this law, if homeowners have to leave the property in order for the drywall to be repaired, they will not lose their homestead tax exemption as long as they haven't established a new homestead elsewhere.

 This law DOES NOT pertain to newly purchased properties if the buyer was aware of the issue (that is, the presence of defective dry wall was disclosed) at the time of purchase. If the buyer was unaware that defective or tainted dry wall was present at the time of purchase then they will be entitled to temporary tax relief.

This relief will be annulled on July 1, 2017, unless reenacted by the Legislature.

 

Liz Flint
Century 21 Hardee-Team Realty - Houston, TX
Houston\Tomball Realtor (832)816-8066

Hey Adell, thanks for the update.

Jun 03, 2010 04:31 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Wow I wonder if other states will adopt new measures like this.

Jun 03, 2010 04:35 PM
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

The law would be a very good idea, hope other states follow.

Jun 03, 2010 05:12 PM