The bill, known as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, aims to assist disabled veterans by allowing those with a 100 percent disability rating from the United States Department of Veterans Affairs to receive tentative certificates of exemption from homestead ad valorem taxes when applying for home mortgage loans. The bill mandates that tax assessing officials issue these certificates within 20 days of receiving the necessary documentation, which includes an affidavit from the veteran, a purchase agreement for the homestead, and proof of their disability status. The tentative certificate will be treated as a valid certificate of permanent and total disability upon the purchase of a homestead.

Additionally, the bill prohibits settlement agents and loan closing officers from factoring in homestead ad valorem taxes when calculating the debt-to-income ratio for veterans who present a tentative certificate. The Department of Revenue is tasked with creating the form for the tentative certificate, which will indicate the veteran's eligibility for tax exemption. The act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 40-9-19, 40-9-21, 40-9-19, 40-9-21
Enrolled: 40-9-19, 40-9-21, 40-9-19, 40-9-21