AL SB130

Veterans with a 100 percent VA disability rating may obtain a tentative certificate of permanent and total disability from tax assessing officials prior to purchasing a homestead, allowing them to claim existing state ad valorem tax exemptions earlier in the home-buying process.

Tax assessing officials must issue the tentative certificate within 20 days of receiving a completed affidavit, purchase agreement, and VA documentation confirming the 100 percent disability rating.

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 create the tentative certificate form, which must specify the amount of ad valorem taxes the veteran is exempt from.

Effective date: October 1, 2026.