Ala. Code § 40-9-21.3 — Disabled Veterans Property Tax Debt-to-Income Ratio Exemption Act

(a) This section shall be known and may be cited as the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act.
(b) A tax assessing official shall issue a veteran who has received a 100 percent disability rating from the United States Department of Veterans Affairs and who may claim an exemption under Section 40-9-19 or 40-9-21 for permanent and total disability a tentative certificate of permanent and total disability prior to purchasing a homestead upon receiving all of the following:
(1) An affidavit on a form supplied by the Department of Revenue that includes all of the following information:
a. The name of the disabled veteran and the name of his or her spouse, if applicable.
b. Whether the homestead will be jointly owned by the disabled veteran and his or her spouse, if applicable.
c. An attestation by the veteran that the homestead is to be occupied as the veteran’s principal place of residence.
(2) The purchase agreement for the homestead.
(3) Documentation from the United States Department of Veterans Affairs, or its successor agency, indicating that the veteran has a 100 percent service-connected, permanent, and total disability.
(c) A tax assessing official shall issue a tentative certificate of permanent and total disability within 20 days of receiving all of the information required pursuant to subsection (b).
(d) A tentative certificate of permanent and total disability shall be considered a valid certificate of permanent and total disability pursuant to Sections 40-9-19 and 40-9-21 upon the purchase of a homestead by a veteran.
(e) A settlement agent or loan closing officer may not consider ad valorem taxes for a homestead when calculating the debt-to-income ratio of a potential borrower who has provided a tentative certificate of permanent and total disability to the agent or officer.
(f) The department shall establish the form of the tentative certificate of permanent and total disability which shall include a section indicating that the disabled veteran, with a 100 percent permanent and total disability rating, is eligible for exemption from ad valorem taxes pursuant to Section 40-9-19 or 40-9-21 on a homestead property.