HB396INTRODUCED
Page 0
HB396
8A8R22H-1
By Representatives Paschal, Fidler, Starnes
RFD: Ways and Means General Fund
First Read: 05-Mar-25
1
2
3
4
5 8A8R22H-1 02/18/2025 ZAK (L)ma 2024-1966
Page 1
First Read: 05-Mar-25
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 100 percent
permanent and total disability rating, are exempt from
all state ad valorem taxes.
Also under existing law, those individuals are
granted a certificate of permanent and total disability
by the Commissioner of Revenue as evidence of this
exemption.
This bill would require County Property Tax
Commissioners to issue tentative certificates of
permanent and total disability to disabled veterans
with a 100 percent permanent and total 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 HB396 INTRODUCED
Page 2
TO BE ENTITLED
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 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 County Property Tax Commissioner shall issue a
veteran with a 100 percent disability rating from the United
State Department of Veterans Affairs who may claim an
exemption under Sections 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 submitting 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 any.
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.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 HB396 INTRODUCED
Page 3
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 County Property Tax Commissioner 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 that a
veteran is exempt from.
Section 2. This act shall become effective on June 1,
2025.
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81