Bill > HB396

This bill, known as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, provides a streamlined process for veterans with a 100 percent service-connected, permanent, and total disability to obtain a tentative certificate of permanent and total disability before purchasing a homestead. The bill requires veterans to submit an affidavit with personal information, a purchase agreement, and documentation from the Department of Veterans Affairs to the County Property Tax Commissioner. The Commissioner must issue the tentative certificate within 20 days, which will be considered valid for property tax exemption purposes. Importantly, the bill prohibits settlement agents and loan closing officers from including ad valorem (property) taxes in the debt-to-income ratio calculations for potential borrowers who have obtained this tentative certificate. The Department of Revenue will create the standard form for the certificate, which will specify the amount of property taxes the veteran is exempt from. The provisions of this bill will take effect on June 1, 2025, and are designed to make home purchasing easier for disabled veterans by preventing property tax considerations from negatively impacting their loan qualification process.

Budget and Finance

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