Forensic Damage Consultants News

The state of Arizona has one of the most convoluted taxation schemes in the country, however they are attempting to make it less onerous. In January 2015 and 2016 changes to licensing and taxation take effect starting to untangle the web of confusion.

If you visit this link it will explain the changes to both taxation and licensing:

Tax and Licensing changes

I have also attached a list of  Q&A on taxation scenarios at this link:

Q&A on AZ taxation for contracting

In short it appears as though Restoration will fall under no license and tax on material only. It will be considered Maintenance, Repair, Replacement, Alteration.

an annual system checkup that includes topping off any fluids, re-staining a wood deck, and
refinishing hardwood floors.

“Repair” is an activity that returns real property to a usable state from a partial or total
state of inoperability or non-functionality. Examples of repairs include: recharging partially
replacing worn washers in leaky or totally inoperable faucets.

“Replacement” is the act of replacing something that exists with something else, including
The upgrading of existing systems. Examples of replacement include replacing an HVAC
system that is no longer functioning at optimum levels with a new, more efficient unit or
replacing a deteriorated shingled roof with a new one.

“Alteration” is an activity that causes a direct physical change to real property without

causing a change in the identity of the real property. Examples of alterations include:
enlarging a patio, sandblasting a building’s façade, and tamping railroad ties.
Materials purchased by a contractor for use in maintenance, repair, replacement, or
alteration activities will generally be subject to retail TPT at the time of purchase, unless
such purchases are otherwise exempt from retail TPT.

This link is to an article I found on category 3 water and Fungi/bacteria exclusion used to exclude coverage from category 3 water loss.

Article on interpretation of Catagory 3 Water

For information only.

I have reviewed and placed several charts depicting material cost since 2008 for your review. They are supplied by Xactware.

Some time ago I informed everyone that I had been selected to help write the updated version of the National Fire and Smoke Damage Standards. Well we have completed the document and it is out for review and comments. It will also become an IESO Standard when completed. This document will discuss sampling methods and protocols, inspectors qualification, laboratory protocols, analyst qualifications,  microscopy use, report generation, a glossary and identification of presents It will not discuss if the presents of soot, char or ash causes damages to materials or personal property.

Len Paradise CR94

God Bless the OLD USA

New Florida Regulations of Interest:

A new Florida bill appears to prohibit homeowner assignments for payments

Please see link to review bill click Here

God Bless the OLD USA

We have had a very busy 2012, working in New England, including hotel, strip center, industrial  fires. Tornado losses in the Southern tier of New York. We are developing our Western work load out of the Arizona office. We have found that many general adjuster as well as executive general adjusters are on the move between companies. We hope that everyone has a Happy New Year.
God Bless the OLD USA

I have just spent my second week in Hawaii getting the lay of the land for loss work in the islands. If the need arises for loss work on Oahu, I feel Very confident that I can perform in a efficient manor now that I have a good foundation on the island.