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SB130 • 2026
Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio under certain circumstances
Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio under certain circumstances
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
- Sponsor
- Elliott
- Last action
- 2026-04-07
- Official status
- Indefinitely Postponed in House of Origin
- Effective date
- Not listed
Plain English Breakdown
The official source material does not provide details on enforcement mechanisms or consequences for non-compliance, leaving these aspects uncertain.
Disabled Veterans Property Tax Debt-to-Income Ratio Exemption Act
This act requires tax officials to issue tentative certificates of disability exemption for certain disabled veterans and prohibits settlement agents from considering homestead ad valorem taxes when calculating these veterans' debt-to-income ratio.
What This Bill Does
- Requires a tax assessing official to issue a tentative certificate of permanent and total disability to a veteran with a 100% disability rating upon receiving specific information.
- Prohibits settlement agents and loan closing officers from considering ad valorem taxes for homesteads when calculating the debt-to-income ratio of these veterans if they have provided a tentative certificate.
Who It Names or Affects
- Disabled veterans with a 100% disability rating from the United States Department of Veterans Affairs
- Tax assessing officials, settlement agents, and loan closing officers
Terms To Know
- ad valorem taxes
- Taxes based on the value of property.
- debt-to-income ratio
- A financial measure that compares how much a person owes to how much they earn.
Limits and Unknowns
- The bill does not specify what happens if a veteran fails to provide the required information.
- It is unclear how this act will be enforced or monitored by tax assessing officials and other relevant parties.
Amendments
These notes stay tied to the official amendment files and metadata from the legislature.
Finance and Taxation General Fund 1st Amendment
Plain English: FKVWFC5-1 : 2/27/2026 : ZAK
1ST FINANCE AND TAXATION GENERAL FUND AMENDMENT TO SB130
OFFERED BY SENATOR ELLIOTT
Page 1
Replace line 59 on page 3 with the following:
veteran has a 100 percent service-connected,
permanent, and total disability .
- FKVWFC5-1 : 2/27/2026 : ZAK
1ST FINANCE AND TAXATION GENERAL FUND AMENDMENT TO SB130
OFFERED BY SENATOR ELLIOTT
Page 1
Replace line 59 on page 3 with the following:
veteran has a 100 percent service-connected,
permanent, and total disability .
- Replace lines 76 through 77 on page 3 with the following:
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 .
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- This amendment summary is using official source text because generated interpretation was skipped for this run.
Bill History
-
2026-04-07
Senate
Currently Indefinitely Postponed
-
2026-03-05
Senate
Read for the Second Time and placed on the Calendar
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2026-03-04
Senate
Reported Out of Committee House of Origin
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2026-03-04
Senate
Finance and Taxation General Fund 1st Amendment
-
2026-01-13
Senate
Pending Committee Action in House of Origin
-
2026-01-13
Senate
Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund
Official Summary Text
Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio under certain circumstances
Current Bill Text
Read the full stored bill text
SB130 INTRODUCED
Page 0
SB130
G3UALCC-1
By Senators Elliott, Jones, Kelley, Bell
RFD: Finance and Taxation General Fund
First Read: 13-Jan-26
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G3UALCC-1 10/10/2025 ZAK (L)ZAK 2025-2740
Page 1
First Read: 13-Jan-26
SYNOPSIS:
Under existing law, the homesteads of residents
of this state who are over 65 years of age or who are
retired due to permanent and total disability,
including disabled veterans with a permanent and total
disability, are exempt from state ad valorem taxes.
Also under existing law, these disabled
individuals are granted a certificate of permanent and
total disability by the Commissioner of Revenue as
evidence of this exemption.
This bill would require a tax assessing official
to issue a tentative certificate of permanent and total
disability to a disabled veteran with a 100 percent
disability rating upon the submission of certain
information.
This bill would also prohibit settlement agents
and loan closing officers from considering ad valorem
taxes for homesteads when calculating these veterans'
debt-to-income ratio upon receiving a tentative
certificate.
A BILL
TO BE ENTITLED
AN ACT
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SB130 INTRODUCED
Page 2
AN ACT
Relating to the Department of Revenue; to provide for
certain disabled veterans to be issued tenative certificates
of exemption from homestead ad valorem taxes upon submitting
certain information ; 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
to be occupied as the veteran's principal place of residence.
(2) The purchase agreement for the homestead.
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SB130 INTRODUCED
Page 3
(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 disability rating.
(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 the amount of ad valorem taxes from which
a veteran is exempt.
Section 2. This act shall become effective on October
1, 2026.
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