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Read. Follow. Verify.Alabama prohibits settlement agents from including homestead taxes in debt-to-income ratios for 100% disabled veterans
Last action · March 17, 2026: EnactedSponsor: Kenneth Paschal
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What This Bill Does
Alabama enacts the Disabled Veterans Property Tax Exemption Act, requiring tax assessing officials to issue tentative exemption certificates to 100 percent disabled veterans for home purchases and prohibiting s from factoring those property taxes into debt-to-income ratios beginning October 1, 2026.
Veterans with total service-connected disability ratings gain an expanded ability to qualify for home mortgage loans by excluding future property tax liabilities from their debt calculations prior to purchasing a home.
- Alabama law provides permanent ad valorem homestead tax exemptions for veterans with a 100 percent total and permanent disability rating under specific code sections. context
- Prior to this enactment, veterans generally could not obtain official exemption certificates until after closing on a property, leaving future taxes to impact pre-purchase mortgage debt calculations. context
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
100 percent disabled veterans
Qualifying veterans can obtain a tentative certificate prior to purchasing a home, allowing settlement agents to exclude homestead ad valorem taxes from their debt-to-income mortgage ratios.
Settlement agents and loan closing officers
These professionals are prohibited from factoring homestead ad valorem taxes into a borrower's debt-to-income ratio upon receipt of a valid tentative certificate.
Tax assessing officials
Officials are required to issue tentative certificates of permanent and total disability within 20 days of receiving the completed application packet and purchase agreement.
Department of Revenue
The department is tasked with supplying affidavit forms and establishing the official format for the tentative certificate.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who qualifies for a tentative certificate of exemption under this act?
What documents must a veteran submit to obtain the tentative certificate?
How quickly must tax assessing officials issue the tentative certificate?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Became law.
Procedural history
16 actions- Mar 17, 2026HouseEnrolledEnacted
- Mar 10, 2026SenateSignature Requested
- Mar 10, 2026HouseEnrolled
- Mar 10, 2026HouseReady to Enroll
- Mar 10, 2026SenateFloorMotion to Read a Third Time and Pass - Adopted Roll Call 765
- Mar 10, 2026SenateThird Reading in Second House
Show 10 earlier actions
- Feb 5, 2026SenateRead for the Second Time and placed on the Calendar
- Feb 4, 2026SenateCommitteeReported Out of Committee Second House
- Jan 20, 2026SenateCommitteePending Committee Action in Second House
- Jan 20, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on Finance and Taxation General Fund
- Jan 20, 2026HouseFloorMotion to Read a Third Time and Pass - Adopted Roll Call 68
- Jan 20, 2026HouseThird Reading in House of Origin
- Jan 14, 2026HouseRead for the Second Time and placed on the Calendar
- Jan 14, 2026HouseCommitteeReported Out of Committee House of Origin
- Jan 13, 2026HouseCommitteePending Committee Action in House of Origin
- Jan 13, 2026HouseIntroducedRead for the first time and referred to the House Committee on Military and Veterans' Affairs
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy5Intensity of disagreement among stakeholders
- Entertainment2Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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