Friday, February 26, 2016

Some Legislative History of the Disabled Veteran Property Tax Exemption

The problem: Colorado's voters defined "qualified disabled veteran via a Constitutional amendment (Referendum E). Presently the Colorado Division of Veterans Affairs unfairly excludes from the benefit qualified veterans with permanent "unemployability" VA awards, and also excludes veterans directly retired by the military services per permanent and total disability.

Military disability retired property tax relief for Colorado's totally disabled military veterans is based on the 2006 amendment to the state Constitution. The wording of the title of Referendum E is inclusive of any "United States Military veteran who is 100% permanently disabled due to a service-connected disability." 

Nowhere in the Constitution nor other legislation does the "unemployability"appear. It was added as an exemption only by extra-legal preference of the CDMVA, contrary to the Constitution.

Here is the full title, approved by the voters:
AN AMENDMENT TO SECTION 3.5 OF ARTICLE X OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING THE EXTENSION OF THE EXISTING PROPERTY TAX EXEMPTION FOR QUALIFYING SENIORS TO ANY UNITED STATES MILITARY VETERAN WHO IS ONE HUNDRED PERCENT PERMANENTLY DISABLED DUE TO A SERVICE-CONNECTED DISABILITY
Here's the text of Referendum E's definition of "disabled veteran:"
(1.5) FOR PURPOSES OF THIS SECTION, "DISABLED VETERAN" MEANS AN INDIVIDUAL WHO HAS SERVED ON ACTIVE DUTY IN THE UNITED STATES ARMED FORCES, INCLUDING A MEMBER OF THE COLORADO NATIONAL yGUARD WHO HAS BEEN ORDERED INTO THE ACTIVE MILITARY SERVICE OF THE UNITED STATES, HAS BEEN SEPARATED THEREFROM UNDER HONORABLE CONDITIONS, AND HAS ESTABLISHED A SERVICE-CONNECTED DISABILITY THAT HAS BEEN RATED BY THE FEDERAL DEPARTMENT OF VETERANS AFFAIRS AS ONE HUNDRED PERCENT PERMANENT DISABILITY THROUGH DISABILITY RETIREMENT BENEFITS OR A PENSION PURSUANT TO A LAW OR REGULATION ADMINISTERED BY THE DEPARTMENT, OR THE DEPARTMENT OF THE ARMY, NAVY, AIR FORCE, OR HOMELAND SECURITY. 
(note: There is a minor conflict between the referendum's pension language and its requirement that disabilities be service-connected – the VA pension program is based on low-income and need, not service-connected disabilities. There is no such thing as 100% service-connected disability pensions.)

The 2007 Legislature "fine tuned" Section 3.5 of Article X from the 2006 Constitutional amendment. It bypassed the voter-approved "any veteran," dropped the pension, but  very improperly redefined and restricted the definition of "qualifying veteran" by failure to adhere to the broad and inclusive language of the voter-approved referendum.
"(3.5) "Qualifying disabled veteran" means an individual who has served on active duty in the United States armed forces, including a member of the Colorado National Guard who has been ordered into the active military service of the United States, has been separated therefrom under honorable conditions, and has established a service-connected disability that has been rated by the United States department of veterans affairs as one hundred percent permanent and total disability pursuant to a law or regulation administered by the department. "
The 2007 Legislature errored in its modification of the definition of "qualifying veteran" away from that approved by the electorate and per the Constitution. This amounted to an ex post facto law depriving many formerly qualified disabled veterans from the Constitution's protection regarding property tax. Further, this violates the US Constitution by depriving the affected veterans of their property (the tax benefit) without due process. From the Colorado Constitution's Bill of Rights:
"Section 11. Ex post facto laws. No ex post facto law, nor law impairing the obligation of contracts, or retrospective in its operation, or making any irrevocable grant of special privileges, franchises or immunities, shall be passed by the general assembly."

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