AL HB396

County Property Tax Commissioners must issue tentative certificates of permanent and total disability to veterans with a 100 percent disability rating from the U.S. Department of Veterans Affairs within 20 days of receiving required documentation.

Veterans seeking the tentative certificate must submit an affidavit (on a Department of Revenue form), a homestead purchase agreement, and proof of 100 percent service-connected disability from the Department of Veterans Affairs.

A tentative certificate shall be considered a valid permanent and total disability certificate under Alabama Code Sections 40-9-19 and 40-9-21 upon purchase of a homestead.

Settlement agents and loan closing officers are prohibited from including homestead ad valorem taxes in debt-to-income ratio calculations for borrowers who provide a tentative certificate of permanent and total disability.

The Department of Revenue must establish the form for the tentative certificate, which shall include the amount of ad valorem taxes the veteran is exempt from; the act becomes effective June 1, 2025.