Senate Bill 130 Alabama 2026 Session

Summary

Primary Sponsor

Chris Elliott Senator

Republican

Session

2026 Regular Session

Title

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

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 permanent and total disability, are exempt from state ad valorem taxes.

Also under existing law, these disabled individuals are granted a certificate of permanent and total disability by the Commissioner of Revenue as evidence of this exemption.

This bill would require a tax assessing official to issue a tentative certificate of permanent and total disability to a disabled veteran with a 100 percent 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