Tax Relief for Victims of Chinese Drywall

Until now, it would seem that no sort of sustainable, financial relief has been provided to the victims of the defective drywall imported from China between 2004 and 2007.

On Tuesday, June 1, 2010, Florida Governor Charlie Crist signed house bill 965 into law that provides property tax relief for the Florida homeowners victimized by the defective Chinese drywall.

The law requires property appraisers to reassess the value of these properties to $0 for property tax purposes. The tax relief will be effective starting the current tax year and will remain until July 1, 2017 unless reviewed and extended by legislatures. To be eligible for this tax relief, a property must have the defective imported or domestic drywall and apply to homeowners who were not aware of the drywall’s presence when the home was purchased.

Governor Crist is being commended by the many that have rallied for homeowner’s assistance since the start of this travesty. Housing and federal authorities such as HUD and FEMA have not offered assistance. Banks have foreclosed on many of these properties and homeowner’s insurance companies discard all claims, leaving struggling homeowners to fend for themselves. Many of these properties have been deemed unlivable as doctors advise residents to move.

Although homeowners were able to claim damages on their tax returns, there hasn’t been any long term relief provided to victims until now. The only remediation for the faulty drywall is complete removal. Electrical wiring, air conditioning coils, copper plumbing, appliances and everything affected by the drywall will also have to be removed and replaced.

The defective drywall emits sulfuric gases that rust air-conditioning coils, electrical wiring and appliances. The drywall has also been linked to serious health problems.

A recent ruling by Judge Robert G. Doumar in a U.S. District Court in Norfolk may have set a standard that could dim an already difficult situation for homeowners with Chinese drywall. The judge ruled in favor of the insurance company, saying that the policy did not cover removing or replacing drywall. The insurance policy did not include damage caused by hidden defect, corrosion, flawed material and pollution.

In the meantime, house bill 965 enacted into law by Governor Charlie Crist have provided much needed relief to victims in the form to property tax credit. Further laws and court rulings that affect the Chinese drywall situation are left to be seen.

Check back with the premier Fort Lauderdale Moving Companies for more on this topic and other pressing issues that affect our community.