Sunday, March 13, 2016

What is the value of Colorado's disabled veteran property tax exemption?

Very simply, a totally disabled veteran's property is given a $100,000 exemption from the appraised value. A veteran's widow(er) also receives the exemption if the veteran was receiving the exemption before death. Sadly, no combat deaths qualify because the servicemember wasn't receiving the benefit at death, obviously.

Referendum E was explained to voters as an effort to thank Colorado's veterans whose service left them 100% permanently and totally disabled, about one percent of all veterans.

Vets still pay property tax but that burden is lessened on average about $466. Total cost to the state was estimated at $1,000,000 for extending the benefit to an estimated 2000 veterans.

There is also a benefit to the entire state in encouraging and supporting voluntary military service.
Referendum E, which became Article X Section 3.5 of our state constitution, is Colorado's largest benefit for qualified disabled veterans, although not to be compared to other states like New Hampshire or New Jersey where all property taxes are excused. The public expressed the intent of a little tax help so that totally disabled veterans might get and keep their homes, although the benefit applies only to homeowners.

Other states provide different property tax relief. Oregon, for instance, exempts only $18,000 of the assessed value. Connecticut and a few other states offer 100% tax exemption. Colorado wrongly considers itself "somewhat above average" in disabled veterans' benefits.

Remember: disabled veterans and military retirees are combat- proven good citizens and also economically beneficial to their states. Their pensions and retirements are huge injections of cash to local economies. Because of federal benefits, they are not burdens, and many states actively target these folks as new residents by offering such things as property and income tax relief. 

Colorado can do so much more, especially with free state park camping, tax-exempt military retirement, and more significant property tax exemptions.



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