Alabama 2026 Regular Session

Alabama House Bill HB77

Introduced
1/13/26  
Refer
1/13/26  
Report Pass
1/14/26  
Refer
1/20/26  
Report Pass
2/4/26  
Enrolled
3/10/26  
Passed
3/17/26  

Caption

Taxation and Revenue; disabled veterans' homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited

Impact

The implementation of HB77 is anticipated to have significant implications for state taxation laws applicable to disabled veterans. Primarily, this act ensures that veterans seeking to purchase a home will not be financially penalized by the inclusion of property taxes in their debt-to-income ratio calculations. This could facilitate a higher rate of loan approvals for qualifying disabled veterans, fostering greater access to homeownership and potentially enhancing their quality of life. By easing these financial constraints, the bill directly addresses the unique challenges faced by veterans with permanent and total disabilities.

Summary

House Bill 77, also known as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, aims to assist veterans with a 100 percent disability rating by exempting certain property taxes from consideration when calculating their debt-to-income ratio for home mortgage loans. The bill mandates that tax assessing officials issue tentative certificates of exemption prior to the purchase of a homestead, enabling veterans to more easily qualify for loans without the added burden of homestead ad valorem taxes impacting their financial evaluation during the loan application process. This legislative effort reflects a broader commitment to support veterans by alleviating financial challenges in homeownership.

Sentiment

The general sentiment surrounding HB77 appears to be positive, with broad support for efforts to provide additional assistance to disabled veterans. The bill has garnered favorable votes, indicating an understanding among legislators of the unique challenges veterans face when navigating the loan application process. The act is seen as a necessary measure to honor and support those who have served in the military, aligning with a collective societal inclination toward enhancing veteran support services.

Contention

While support for HB77 was pronounced, potential points of contention relate to the broader implications for state revenue, given that property taxes are a critical source of funding for local governments. Opponents might argue that exempting certain segments of the population from tax calculations may create disparities in available government resources or shift the tax burden to other citizens. However, the bill primarily focuses on providing a necessary financial relief mechanism to a specific demographic—disabled veterans—acknowledging their service and sacrifices.

Companion Bills

No companion bills found.

Previously Filed As

AL HB396

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

AL HB303

Ad valorem taxes, reimbursement of taxes for 100 percent disabled veteran to date of determination

AL SB256

Mobile County; amend definition of municipal tax lien to authorize the inclusion of certain weed liens on a tax bill under certain circumstances; deem municipality as prevailing party in certain bid auctions resulting in a tie; authorize municipality to enter property to make repairs under certain circumstances; and authorize tax collecting official to sell a tax lien under certain circumstances.

AL HB379

Income tax, remote workers exempt under defined circumstances

AL HB19

Creating an Ebony Alert System to send an alert to assist in the recovery of a Black youth, including a young woman or girl, under certain circumstances.

AL HB253

Taxation; certain aircraft and aircraft parts are exempt from sales, use, and lease taxes

AL HB13

Firearms, to prohibit possession and transfer of assault weapon under certain circumstances

AL HB228

Income tax, to exempt certain income earned by members of the Alabama National Guard

AL HB226

Homestead exemptions, extending to unremarried widow or widower

AL HB61

Public K-12 schools, home school students authorized to attend career and technical education programs in certain circumstances

Similar Bills

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Homestead Property Tax Benefits for Long-term Owners and Permanent Residents

FL S1184

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FL H6027

Homestead Assessment Limitation Transfer

AZ SB1543

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FL S1210

Transfer of Homestead Property by Inheritance

FL S0278

Limitation on the Assessed Value of New Homestead Property

FL H0793

Assessment of Inherited Homestead Property

FL H0211

Accrued Save-Our-Homes Property Tax Benefit for Non-school Property Tax