AL HB77

Veterans with 100 percent VA disability rating may obtain a tentative certificate of exemption from homestead ad valorem taxes prior to purchasing a home, allowing them to qualify for the exemption under Sections 40-9-19 or 40-9-21 of Alabama Code before closing

Tax assessing officials must issue the tentative certificate within 20 days of receiving a completed affidavit, purchase agreement, and VA disability documentation

Settlement agents and loan closing officers are prohibited from including homestead ad valorem taxes when calculating the debt-to-income ratio for veterans who present a tentative certificate

The Department of Revenue must establish the official form for the tentative certificate of permanent and total disability

Effective date: October 1, 2026