HB396 Alabama 2025 Session

Summary

Primary Sponsor

Kenneth Paschal Representative

Republican

Session

2025 Regular Session

Title

Taxation and Revenue; Homestead ad valorum taxes of certain veterans prohibited from inclusion in debt-to-income ratio

Description

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.

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Subjects

Taxation & Revenue