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Alabama / State / 2026 Regular Session

Act 2026-268 (HB77) Created a tentative certificate so a lender leaves out property tax for a 100 percent permanent and total veteran

Catalog reconciledEnactedProgram created

Signed Takes effect

Expands benefits Keeps property tax out of the debt-to-income ratio on a home loan for a 100% permanent and total veteran.

Added Code section 40-9-21.3, the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act. A tax assessing official issues a tentative certificate of permanent and total disability within 20 days of a Department of Revenue affidavit, the purchase agreement and VA documentation of a 100 percent service-connected permanent and total disability; it becomes a valid certificate on purchase, and a settlement agent or loan closing officer may not count the ad valorem tax in the debt-to-income ratio. Effective October 1, 2026.

Progress

Path to law: Bill in a two-chamber legislature

  1. Introduced Done, House
  2. In committee Done, House Military and Veterans' Affairs, then Senate Finance and Taxation General Fund
  3. Passed one chamber Done, House
  4. Passed both chambers Done, Senate
  5. Signed by the governor Done,
  6. In effect Done,

Sponsors

  • Kenneth PaschalSponsor, Republican, House, District 73
  • Jennifer FidlerCo-sponsor, Republican, House, District 94
  • Jerry StarnesCo-sponsor, Republican, House, District 88
  • Troy StubbsCo-sponsor, Republican, House, District 31
  • Ivan SmithCo-sponsor, Republican, House, District 42
  • Chip BrownCo-sponsor, Republican, House, District 105
  • Tim WadsworthCo-sponsor, Republican, House, District 14
  • Ritchie WhortonCo-sponsor, Republican, House, District 22
  • Bob FincherCo-sponsor, Republican, House, District 37
  • Ron BoltonCo-sponsor, Republican, House, District 61
  • Rick RehmCo-sponsor, Republican, House, District 85
  • Bill LambCo-sponsor, Republican, House, District 62
  • Donna GivensCo-sponsor, Republican, House, District 64
  • Kerry (Bubba) UnderwoodCo-sponsor, Republican, House, District 3

What it touches

  • Code of Ala. § 40-9-21.3

Catalog entry

Official record

Read Act 2026-268 (HB77) on the jurisdiction's own record