The Alabama Senate gave final passage Tuesday to legislation by Representative Kenneth Paschal, R-Pelham, that allows veterans with full disabilities to exclude ad valorem taxes from debt-to-income ratios when purchasing a home.
“Our disabled veterans have rendered great service to our nation and made significant sacrifices, so we should take every step necessary to ease their path toward homeownership,” Paschal said. “This commonsense legislation will not cost the state a penny, but it can bring meaningful, positive change to the lives of those who have already given so much to all of us.”
Veterans with 100 percent permanent disabilities already receive a full exemption from property taxes on their homes. The legislation allows them to claim the exemption when a home is under contract but before they take ownership.
Allowing the preliminary application ensures potential ad valorem taxes will not be included in debt-to-income ratio calculations when applying for a loan or mortgage.
Paschal, vice chair of the House Military and Veterans Affairs Committee, thanked Senator Keith Kelly, R-Anniston, for carrying the bill in the Senate and praised Representative Jennifer Fidler, R-Silverhill, who approached him about the issue on behalf of a constituent and worked with him to pass the legislation.
The bill now goes to Governor Kay Ivey for consideration.
