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HB77 ENROLLED
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HB77
ARHR4Q7-2
By Representatives Paschal, Fidler, Starnes, Stubbs, Smith,
Brown, Wadsworth, Whorton, Fincher, Bolton, Rehm, Lamb,
Givens, Underwood
RFD: Military and Veterans' Affairs
First Read: 13-Jan-26
PFD: 02-Dec-25
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PFD: 02-Dec-25
Enrolled, An Act,
Relating to the Department of Revenue; to provide for
certain disabled veterans to be issued tentative certificates
of exemption from homestead ad valorem taxes when applying for
home mortgage loans; and to prohibit settlement agents and
loan closing officers from considering homestead ad valorem
taxes when calculating the debt-to-income ratio of these
veterans upon receiving a certificate.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) This act shall be known and may be cited
as the Disabled Veterans Property Tax Debt-To-Income Ratio
Exemption Act.
(b) A tax assessing official shall issue a veteran who
has received a 100 percent disability rating from the United
States Department of Veterans Affairs and who may claim an
exemption under Section 40-9-19 or 40-9-21, Code of Alabama
1975, for permanent and total disability, a tentative
certificate of permanent and total disability prior to
purchasing a homestead upon receiving all of the following:
(1) An affidavit, on a form supplied by the Department
of Revenue, that includes all of the following information:
a. The name of the disabled veteran and the name of his
or her spouse, if applicable.
b. Whether the homestead will be jointly owned by the
disabled veteran and his or her spouse, if applicable.
c. An attestation by the veteran that the homestead is
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c. An attestation by the veteran that the homestead is
to be occupied as the veteran's principal place of residence.
(2) The purchase agreement for the homestead.
(3) Documentation from the United States Department of
Veterans Affairs, or its successor agency, indicating that the
veteran has a 100 percent service-connected, permanent, and
total disability.
(c) A tax assessing official shall issue a tentative
certificate of permanent and total disability within 20 days
of receiving all of the information required pursuant to
subsection (b).
(d) A tentative certificate of permanent and total
disability shall be considered a valid certificate of
permanent and total disability pursuant to Sections 40-9-19
and 40-9-21, Code of Alabama 1975, upon the purchase of a
homestead by a veteran.
(e) A settlement agent or loan closing officer may not
consider ad valorem taxes for a homestead when calculating the
debt-to-income ratio of a potential borrower who has provided
a tentative certificate of permanent and total disability to
the agent or officer.
(f) The Department of Revenue shall establish the form
of the tentative certificate of permanent and total disability
which shall include a section indicating that the disabled
veteran, with a 100 percent permanent and total disability
rating, is eligible for exemption from ad valorem taxes
pursuant to Section 40-9-19 or 40-9-21, Code of Alabama 1975,
on a homestead property.
Section 2. This act shall become effective on October
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Section 2. This act shall become effective on October
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1, 2026.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 20-Jan-26.
John Treadwell
Clerk
Senate 10-Mar-26 Passed
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