Bill > HB77

This bill, known as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, establishes a process for disabled veterans with a 100 percent service-connected disability rating to obtain a tentative certificate of permanent and total disability before purchasing a homestead. The bill requires tax assessing officials to issue this certificate within 20 days of receiving an affidavit with the veteran's personal information, a purchase agreement, and documentation of their disability status from the U.S. Department of Veterans Affairs. The certificate will help veterans qualify for property tax exemptions under existing Alabama law. 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 this tentative certificate. The Department of Revenue must create a standard form for the certificate that clearly indicates the veteran's eligibility for property tax exemptions. The provisions of this act will become effective on October 1, 2026, providing a clear timeline for implementation and giving relevant agencies time to prepare.

Budget and Finance, Military Affairs and Security

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