Bill > SB130

This bill, known as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, aims to help severely disabled veterans by preventing their homestead property taxes from negatively impacting their ability to secure a mortgage. Specifically, it mandates that tax officials issue a tentative certificate to veterans who have a 100 percent disability rating from the U.S. Department of Veterans Affairs and who are purchasing a primary residence. To obtain this certificate, the veteran must provide an affidavit with personal and property ownership details, a purchase agreement, and documentation of their disability rating. Once issued, this tentative certificate will be considered valid for property tax exemptions and, crucially, will prevent lenders from including the estimated annual property taxes for that homestead in the calculation of the veteran's debt-to-income ratio, a key factor in mortgage approval. The Department of Revenue will create the form for this certificate, which will also indicate the amount of property taxes the veteran is exempt from. This act is set to take effect on October 1, 2026.

Budget and Finance

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