Colorado recognizes sacrifices of our totally disabled veterans, awarding a partial property tax exemption to 100 percent totally and permanently disabled veterans. The U.S. Department of Veterans Affairs has two types of 100% disabled veterans – (1) vets with a 100% disability (2) vets with a total disability rated “Total Disability for Individual Unemployability” (TDIU.) VA benefits for the two types are identical, but Colorado’s TDIU veterans are unfairly denied the exemption
Here's what has been proposed to the American Legion, although in no way approved yet It needs post approval, then district, before the Department of Colorado can decide on it. Again. only a draft. (May 5: modified to forward the resolution only to UVC for them to consider.)
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That's a standard first set by Rogers' Rangers in 1756 and a formal part of today's Ranger Creed. It is perfectly understood by every American soldier, sailor, airman and Marine:
"I’m not going to leave my buddy on the battlefield if he’s wounded, I’m going to try not to leave him on the battlefield if he’s dead.”
Here in the great mile-high Centennial State, we've dropped the ball when it comes to Gold Star Spouses, survivors of troops who die on active duty. We protect our disabled veterans' survivors as is right and proper, but we've excluded every one of the 150 surviving spouses of an active-duty death from eligibility under Colorado's Disabled Veteran Survivor Property Tax Exemption.
As an old soldier I find this abhorrent and a dishonorable state action in the extreme. We've left our buddy's spouse behind and there's just no excuse. Certainly, none that a fallen troop, a soldier husband or soldier wife, would accept!
We let this happen through oversight about legislation that created the disabled veterans' spouses' exemption in 2006 and 2014. In doing so legislators specifically used language to disquality around 150 Gold Star Spouses:
."..the surviving spouse of a disabled veteran who previously qualified for a property tax exemption for the same residential real property under paragraph (a) of this subsection (1)"
See our problem? A widow qualifies only as the survivor of a veteran who was already getting the exemption, language making it impossible for the widow of an active military line-of-duty death to be included. In an old movie and an older, very insightful book this was called "Catch-22."
I've never seen a worse or more gruesome Catch-22! Let's get the United Veterans Coalition and every state legislator behind the correction.UVC, let’s correct this by 2022!
LCS calculated around 150 potential widows/widowers might be made eligible, for a cost to the state budget of just $95,000. This is much more doable than the earlier estimate of nearly 1000 exemptions with the cost of just under $1 million. I think the number is higher, perhaps a couple hundred.
This is much more doable than the earlier estimate of nearly a thousand exemptions with the cost of just under $1 million. Still, it is a cost that must be matched by a reduction somewhere.
Other stats from the Colorado Fiscal Institute and other sources have been identified that help clarify things:
-addition of Gold Star Wives is just a 0.0006 fraction of the overall homestead exemption, or 150 compared to 450,000, and a similarly small portion of the vets/survivors' population of 5500 souls.
-veterans and survivors exemptions are only 2% of the overall homestead exemption
-disabled veterans; survivors include the only under 65 years of age population eligible for exemption-52% of active duty troops are married and thus, potentially 52% of active duty deaths leave Gold Star Spouses. Overwhelmingly, and sadly, deaths are heaviest among younger troops, averaging age 30. This is always the case in war
-Nationally, around 27% of homeowners are age 35 or younger with an even lower percentage for active-duty military.
These numbers should help calm the "sticker shock" otherwise expected from legislators and state budget officials, and they also help move this project along as we firm up specifics. Thank you, LCS and the state representative who raised the issue with them in 2019. This really helps!
-Active-duty servicemembers have lower homeownership rates (mean 43%) at younger ages than veterans (78%) and the population as a whole (68%,) but they have the highest homeownership rates (71%) in the 55-up age group
-Home ownership by veterans is greatly benefited by VA loans, and by the steady disability or retirement income many have.
-Home ownership by active duty servicemembers is also benefited by VA loans, and steady, easily verified income. Ownership is made much more difficult due to frequent transfers, and there is a significant initial home ownership surge at retirement age
-As homeownership is an important wealth-building tool (Goodman and Mayer 2018), smaller
homeownership gaps by race or ethnicity also means smaller wealth gaps. According to the Panel Study
of Income Dynamics, the black-white housing wealth gap in 2017 was $48,500 for households with veterans and active-duty servicemembers ages 35 and 54, but the gap was $71,500 for nonmilitary households. Too many younger totally disabled veterans never have the opportunity to acquire wealth or home ownership due to income limitations, even with the VA loans.
-Veteran households (non-disabled) and active-duty military households have higher median household incomes than nonmilitary households, $70,000/yr vs. $60,000, with communities of color having lower race disparities than the general population.Household income also varies by military status, age and length of service.
-The average income is $90,800 (with benefits' value included) for active-duty military households, $87,600 fo non-disabled veteran households, and $85,000 for nonmilitary households. Spousal income is lower for active-duty military than for veterans and the general population.
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Because our state restricts survivor benefits to those whose veterans were already in receipt of the exemption at the time of death, we lock out from all such benefits survivors of troops who die on active duty. Perhaps we can use the existing language of the law.
Perhaps, only changing the interpretation or definition of the words "totally disabled veteran already in receipt of the exemption" to something like "or active duty death considered to be 'totally disabled and already in receipt of the exemption."
Here's the resolution:
WHEREAS, Since the Revolutionary War, more than one million American soldiers have died in battle and military conflicts; their families, who have endured these losses and the accompanying grief, are known as Gold Star Families and their spouses as Gold Star Wives; and Gold Star Families are a living legacy of each fallen soldier to help us all remember and honor these heroes by name and deed, and
WHEREAS, on April 5 2021 the Seventy-third General Assembly of the State of Colorado issued Senate Joint Resolution 21-010, resolving on behalf of the citizens “That we, the members of the Colorado General Assembly, honor the pride and the pain of the parents and partners and children and siblings of our fallen heroes who lost his or her life serving our country and protecting our freedom; and recognize the families of these proud patriots with an expression of profound gratitude and respect” and
WHEREAS, in 2006 the citizens of Colorado overwhelmingly approved by amendment to the State Constitution Article X Section 3.5 the Disabled Veteran Property Tax Exemption for totally disabled service-connected military veterans; and in 2014 the Colorado Legislature established the Disabled Veteran Surviving Spouse Property Tax Exemption for surviving spouses of totally disabled veterans already in receipt of the exemption by HB14-1373, and
WHEREAS, the sacrifices of Gold Star Families are to be honored with respect as well as material support and
WHEREAS, surviving spouses of servicemembers who die on active duty are only by the technicality of their servicememember’s death not being in receipt of the exemption thereby denied the exemption, and
WHEREAS, this distinction between survivors of totally disabled veterans already in receipt of theDisabled Property Tax Exemption and survivors of active duty servicemembers (“Gold Star Wives”) denied the exemption solely due to the death of their spouse while in service is an offense to the honor of the State, contrary to the Seventy-third General Assembly of the State of Colorado Senate Joint Resolution 21-010, and contrary to the intentions of Colorado citizens’ approval of Article X Section 3.5 as presented in the 2006 Referendum E, and
WHEREAS, the Colorado Department of the American Legion and the Gold Star Wives are both member organizations of the United Veterans Coalition of Colorado, and
WHEREAS, either a legislative or constitutional amendment process being necessary, it may suffice that a redefinition of “disabled veteran” to include a death on active duty, or other such procedure as theGeneral Assembly shall direct; and that surviving spouses of Colorado Air and Army National Guardmembers who die while activated by the Governor for State service should also receive such respect and benefits, it is therefore
RESOLVED, by the George Beach Post 4 of the Department of Colorado that inclusion of unremarried Gold Star Wives and unremarried surviving spouses of State National Guard members who die while activated by the Governor for State service, be included in the Disabled Veteran Survivor Property Tax Exemption because it is both necessary and proper, that the United Veterans Coalition be informed for this to be part of its state legislative objectives until acted upon; and the Colorado Board of Veterans Affairs and all relevant committees of the Colorado General Assembly be informed of this Department’s wish that efforts by them be undertaken for inclusion of Gold Star Wives in the Disabled VeteranSurvivor Property Tax Exemption with a goal of implementation before 2023.
Can the legislature do it again? Can't the legislature define an active duty servicemember who dies in the line of duty as a disabled veteran? That might work to pack into Article X Section 3.5 our few Gold Star Wives. The new text is in red
These will be go to our Google Drive files for the most current version of the one page brief, the longer full background report, and the PowerPoint presentation that's been used so far. The Colorado National Guard is mentioned throughout but will be only more generally referenced in a later version.
1.The two page shortest possible handout is linked here.
2. Full 12-page brief:
Link: https://drive.google.com/file/d/1N0HT08Ykq4gHjoQnB-8zU4dudaWLtdLn/view?usp=sharing
Well, too often there's only mild concern about this problem with Colorado's Gold Star Wives' property tax issue. In six years I've had conversations with United Veterans Collation, chiefs of staff in Denver, legislative assistants and others. I've sent out over 500 emails with but two or three responses, including a very nice one recently from Senator Joann Ginal's staff here in Fort Collins.
Perhaps this will be something our local senator will get behind, for which I'm grateful even for her briefest consideration of the issue. From her colleagues, from other directions, other places. Nothing.
Nothing.
"Not my problem, but perhaps you could talk to your legislator."
"We can't do anything on survivors' benefits. That's (fill in the blank) responsibility." "Maybe next year."
"We need all possible questions answered before we can possibly discuss this." (BTW, I'm 75 years old, quite ill, sucking oxygen, worried about whether my cancer is gone, homebound and I've only got a few thousand dollars budgeted to throw at the issue. It isn't like I'm able to do this myself: Rather, I pretty much expected responsible public servants and veterans advocates to see a problem when laid out before them and discuss how it can be resolved. Yeah, right.
Since 2016 when I first brought this to the attention of UVC, there's been ZIP, zero, nada, nothing. I thought the issue of Colorado making Gold Star Wives pay more property taxes than survivors of Colorado's 100% disabled veterans would strike many Coloradans as wrong to the core. Nope.
League of Women Voters, University Women clubs, veterans organizations, DMVA, DOLA, other state agencies – almost universally no response at all. The folks I was to speak with are disappointed to learn that Gold Star Wives whose spouses died on active duty are denied the same partial property tax exemption. granted survivors of totally disabled veterans. They're somewhat taken aback. Saddened, a little. Disbelieving that the state would do that to military widows. Disappointed.
I'm puzzled: How could UVC have a (very worthy!) goal of property tax relief VA Total Disability for Individual Unemployability (TDIU) disabled veterans (wonderful – a goal I've also advocated directly and thru the UVC since 2015!) but not Gold Star Wives? Logically, conscious state leaders would balk at tens of thousands of TDIU claimants, but not at under a thousand Gold Star Wives. Logically, both issues are so tied to the same Article X Section 3.5 that they both should have been legislative objectives, either jointly or as separate issues.
I need to remind myself of Ecclesiastes 9:10: “Whatsoever thy hand findeth to do, do it." Sounds reasonable...just keep doing it as best we can.
with thy might.”I'm amazed, because this is an issue guaranteed to get a virtually unanimous vote if it could ever reach our legislators. After all, imagine the news photo of the very few politicians who would raise their hands in opposition to legislation permitting Gold Star widows the same property tax exemption granted survivors of totally disabled veterans.
There are so few Gold Star Wives. Especially few are the Gold Star Wives whose spouses died on active duty. The best guess is Colorado has fewer than one thousand men and women survivors of troops lost on active duty. The number pales against the numbers receiving the Homestead Exemption – the total disabled veterans and survivors are only 2% of the general homestead exemption category, and active duty widows/widowers a terribly smaller percentage of that.
First, neither United Veterans Coalition of Colorado nor Gold Star Wives is seeking action on such issues for 2021, and that's ideal because some groundwork is needed this year. There is no possibility of resolution until 2022 and more likely, not until 2023. There are many veterans issues on this year's schedule and it is vital to set priorities.
I'll continue efforts to contact UVC committee chairs about how they'd suggest moving forward. This kind of property tax relief is not on the list of UVC legislative objectives. UVC does have, however, the objective of legislation adding veterans with permanent and total individual "unemployability" (my thoughts) to the benefit. I like legislation rather than constitutional amendment, but certainly feel the priority should rest with action helping survivors as soon as politics and economics permit.
Here's UVC's state legislative objective. Note Item 7, which reads:
7. Support legislation to add ‘Individually Unemployable’ veterans (as defined by U.S.C.Title 38) to the Homestead Act property tax exemption
I backed off the subject after the United Veterans Committee (now United Veterans Coalition) made clear its nonsupport at that time. Understandably, it was best to avoid conflict and not mess up the carefully-crafted UVC legislative agenda. Happily, I understand that UVC has a related bill to increase the exemption as one of the 2021 objectives. Unhappily, I feel its cost of over $19M leaves no chance of success and UVC and the bill's sponsor might instead have pushed for Gold Star Wives and/or TDIU disabled veterans.
I refer here to Referendum E from back in 2006. Our legislature generously proposed a constitutional amendment (Article X Section 3.5) to provide a small partial property tax exemption to totally disabled veterans. Note the wording: "totally disabled veterans." Let's follow that bouncing ball of how definitions of "totally disabled veterans" kept a-changing – and to finally covered as few vets as possible:
Here is the full text of Referendum E to amend the state constitution:
"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.”
This is important: Note the "one hundred percent permanently disabled" and the separate phrase, "due to a service-connected disability." Here in Colorado those words are now interpreted to be one kind of totally disabled veteran but could be read to refer to two kinds. That's right. VA has two different types of totally and permanently disabled veterans. "TDIU" for total disability for individual unemployability" and 100% service connected disabled for vets with a disability, or group of disabilities when added together, equalling 100%.
Here is how the Legislative Council told us via the Blue Book what we were voting for:
"Veterans are rated 100-percent permanently disabled when a mental or physical injury makes it impossible for the average person to hold a job and the disability is lifelong."
An overwhelming 85% of Colorado voters approved this worthy benefit for those who served our state and nation. But then the lawmakers themselves got involved and took a fire hose to the benefit, watering it down quite a bit.
When Denver finally enacted legislation for the mechanics of Article X section 3.5 to work, Referendum E ended up much less broad than what we approved. The number of qualified recipients of the benefit was cut by more than half to protect budget resources for other projects.
Here is the actual text that finally delivered Referendum E to us as law:
"(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 federal department of veterans affairs as a one hundred percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the department."
And next, here is the Colorado Department of Military and Veterans Affairs form for applicants, where there are two portions describing "totally disabled veterans."
"A “qualifying disabled veteran” is a person who meets each of the following requirements
- § 39-3-202(3.5), C.R.S . A “qualifying disabled veteran” is a person who meets each of the following requirements - § 39-3-202(3.5), C.R.S.• The veteran sustained a service-connected disability while serving on active duty in the Armed Forces of the United States. This includes members of the National Guard and Reserves who sustained their injury during a period in which they were called to active duty. • The veteran was honorably discharged.• The federal Department of Veterans Affairs has rated the veteran’s service-connected disability as a one hundred percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the department"
– and from the back page –
"2. DISABLED VETERAN STATUS: To qualify, both questions must be true and you must attach a copy of your VA award letter verifying that you have been given a permanent disability rating by the VA."
CDMVA web site:
"The Disabled Veteran Property Tax Exemption is available to applicants who sustained a service-connected disability rated by the Federal Department of Veterans Affairs as a 100 percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the Department, the United States Department of Homeland Security, or the Department of the Army, Navy or Air Force. VA unemployability awards do not meet the requirement for determining an applicant’s eligibility."
So, after all this reading, do you see where the disabled veteran property tax exemption got watered down by more than half? It was through the disqualification of veterans rated totally and permanently disabled by VA for "unemployability." Tossed into the program are the words, "VA unemployability awards do not meet the requirement for determining an applicant’s eligibility." Note that these TDIU people aren't veterans who are out of work, but instead vets who've been evaluated as being physically unable to ever work. And are monitored to make sure that remains the case.
Side note: the constitution included as eligible veterans those who were medically retired by their service as 100% disabled. The fourteen words describing these vets were left out of the law until 2016, when HB16-1444 brought the tax legislation into accord with the constitution.
(Here is an analysis I prepared in 2016 when I last worked on disabled veteran unemployability tax exemption issues.)
VA "unemployability" is its 100% disability rating for vets with at least one 60% service-connected issue and whose overall disabilities are so severe, so far beyond the scope for which VA assigned the 60%, that any meaningful employment is impossible. VA has other rating of "catastrophically disabled" but even when a vet is rated both unemployable and catastrophically disabled, that doesn't meet CDMVA's redefinition of Referendum E also is awarded to vets with at least a 60% service-connected disability:
"Veterans are considered to be Catastrophically Disabled when they have a severely disabling injury, disorder or disease that permanently compromises their ability to carry out the activities of daily living. The disability must be of such a degree that the Veteran requires personal or mechanical assistance to leave home or bed, or require constant supervision to avoid physical harm to themselves or others."
Let's note that VA has two kinds of unemployability awards. The first is temporary or "IU," meant for periods of uncertainty about recovery or rehabilitation after surgery or illness, and the second is permanent (TDIU) for exactly that – permanent disability for life. TDIU veterans not only are medically determined to be unable to work, they are also carefully evaluated for that situation by the Veterans Benefit Administration before given the rating. Finally, they are carefully monitored by VA to check that they remain unable to work and both Social Security and IRS records are checked.
"Veterans are considered to have total disability when they have a 100 percent disability rating due to service-connected disabilities or if their service-connected disabilities make them unemployable. For the total disability to be permanent, the law requires the disability to be “based upon an impairment reasonably certain to continue throughout life.""The Veterans Benefits Administration Inadequately Supported Permanent and Total Disability Decisions",VA OIG 19-00227-226, Page ii, September 10, 2020
I asked CDMVA and they said ask DOLA. I asked DOLA and in 2014 was told "some legislators" wanted that limitation. Legislators. Not the voters. Legislators introduced (snuck in!) their own idea of
disqualification into what voters more broadly approved as our constitutional amendment.
My view: Veterans with a 100% disability rating, including TDIU, were provided the small tax exemption via Referendum E when we voted approval. TDIU eligibility should be corrected by legislative action. I do not favor broadening the Disabled Veteran Property Tax Exemption below the 100% disability level as the impact would be far too burdensome on taxpayers.
Further, veterans often have disabilities common among folks their own age group, such as COPD, diabetes, hypertension and hearing loss. It would be unfair to a taxpayer with COPD to pay full property taxes while the veteran neighbor with a 50% COPD disability rating doesn't. The obvious need for tax relief is for survivors and the totally disabled veteran! Full stop.
Conclusion: A few legislators hijacked Referendum E and Article X Section 3.5 of the constitution, doing decades of harm to a large number of otherwise qualified Colorado totally disabled veterans and their survivors.
Time to set this right! What say you – Is 2022 too soon?
CLICK to download this 5-page outline of this goal for Gold Star Wives to get the same property tax relief as do survivors of disabled veterans.
I have to admit, progress thus far is fairly disappointing. Mailings and phone calls for two weeks to politicians, associations, veterans, the media and everyone else I could think of have had a single response. Senator Ginia's staffer called to ask a couple questions to decide whether she'd brief her boss.
On Monday I have a Zoom call with the Governor and the Lieutenant Governor's chiefs of staff. I have questions aplenty, but don't know what their perspective is. Last year it was all about, "Nice, Wes. We'd like to offer widows the exemption but where's the money to come from?"
Here's an issue nobody in the Capitol would vote against, and we can't get traction. At age 75 and with various attention-grabbing health issues, I sure hope some champion will leap out in front of this project to take it on.
Yes, it was nice of the legislature, but Colorado certainly did it on the cheap!
Our legislature once again has published a joint resolution (above) "honoring" survivors of Colorado's soldiers, sailors, airmen and Marines who died on active duty, often in combat, always in service to state and nation. A Gold Star Wife (sometimes the word "spouse" is used) has lost their spouse while on active military duty. The Gold Star Wives is an organization nobody wants to join - the cost in pain and suffering is just too high!
Clearly, it is an empty vessel. Nice words, quality paper, good typing and warmly appreciated by the widows, but completely useless in helping widows of Colorado's war dead address the financial impact of their loved ones' s death while on active military duty.
But nothing more substantial than a resolution with a budget impact of three sheets of paper. Nothing else. No benefits extended by a tight-fisted legislature during times when both government and the governed find themselves stretched financially.
The issue here is that for yet another year, our legislature had opted not to permit Gold Star Wives to receive the same small partial property tax exemption provided to survivors of 100% disabled veterans. How is this done?
In 2006 voters approved Resolution E and offered Colorado's veterans with a 100% VA disability a modest property tax exemption. Merely exempting $100,000 of the first $200,000 assessed valuation. Saves between $459-$600 – not much but it helps when trying to get by on the small VA widow's pension.
The benefit is only extended to the survivor of a disabled veteran already in receipt of the property tax exemption at the time of death. So, what about a widows of a troop killed in combat? Yup - there's the problem. A soldier dying in combat is obviously totally disabled by death but will never "be in receipt of the exemption at the time of death," as required by Article X Section 3.5 of the state constitution.
Following the popularity of the banners, in 1947, Congress approved the design for the official Gold Star lapel pin/button. This was introduced to represent service members who had died in combat. The pin takes the form of a gold star on a purple background.
During the funeral service of the fallen military member, senior officers present the Gold Star Pin in addition to the national colors to the spouse or next of kin as a mark of respect for their sacrifice.
Gold Star Spouses Day brings awareness of the sacrifices and grief these spouses have faced in the name of their country. However, possibly more importantly, it brings awareness for the Gold Star survivors themselves of the large network of resources and assistance that is available to them. A few examples of the resources available to these spouses are: Tragedy Assistance Program for Survivors (TAPS), scholarship resources which include the Pat Tillman Scholarship and the Fisher House Foundation Scholarship for Military Children, in addition to the Army’s Survivor Outreach Services (SOS).
While Gold Star Spouses Day is not a national holiday, there are many installations that have their own programs to observe this day. Many of the installation observances focus on the military fitness and lifestyle. For instance, there are quite a few remembrance 5Ks which are run on April 5. There are also remembrance efforts seen online and on social media. One such effort is the Facebook campaign which urges Gold Star families to share photos and memories of their fallen loved ones.
While Gold Star Spouses Day is one day set aside each April to acknowledge the sacrifices of these military family members, their grief and loss is something that should be remembered each and every day. These special families have lost a loved one in the name of freedom, in the name of the United States. Their family member willingly fought, served and gave that ultimate sacrifice. This is something that should never be overlooked or forgotten, rather is something that should be acknowledged every day. Without these tragic losses, Americans would not have the freedoms they hold so dear, nor would America be the proud country that it has always been. It is only through the willingness to give everything that Americans have the ability to hold onto the patriotic pride that is so important.
This Gold Star Spouses Day, and every day, take the time to remember these families that have given so much. Never take for granted the freedoms America has been given and fought for. Keep these sacrifices in mind each day, and be grateful for the men and women who are so willing to pay that ultimate price for their country. Whether you take to social media or see one at your local military installation, thank a Gold Star Spouse today.
Legislative Council of the Colorado General Assembly
REFERENDUM E:
Summary and Analysis (Research Pub. No. 554)
How does the program work?
Homeowners pay property taxes based on the value of their home and the tax rate set by the local governments where they live. Referendum E reduces the taxable value of a qualified veteran's home by one-half of the first $200,000 of the home's value, thereby lowering property taxes owed on the home. The state legislature can adjust the $200,000 amount to either increase or decrease the benefit from Referendum E in future years.
Currently, the state offers the same property tax reduction to homeowners age 65 and over who have lived in their homes for at least ten years. A qualifying veteran who is also eligible for a reduction in property taxes as a senior cannot claim both reductions. The dollar amount of the tax reduction will vary among homeowners depending upon the local property tax rate, the home's value, and the amount of the exemption.
Who qualifies for the tax reduction? Homeowners who have served on active duty in the U.S. Armed Forces and are rated 100-percent permanently disabled by the federal government due to a service-connected disability qualify for the tax reduction in Referendum E. Colorado National Guard members injured while serving in the U.S. Armed Forces also qualify. Veterans are rated 100-percent permanently disabled when a mental or physical injury makes it impossible for the average person to hold a job and the disability is lifelong. (1)
Nationally, less than one percent of veterans have a 100-percent permanent disability rating. About 2,200 veterans are expected to qualify for the property tax reduction in Colorado.
What are the fiscal implications? Referendum E affects property taxes paid beginning in 2008. The average property tax savings for those who qualify will be about $466. The total reduction in property taxes is estimated to be about $1 million in the first year.(2)
The state is required to reimburse local governments for the reduction in property tax revenue resulting from Referendum E.
Arguments For:
1) Colorado needs to do more to help veterans who have sacrificed their health for our nation and state.(3) Many states offer a property tax reduction for disabled veteran homeowners, and six states do not require these veterans to pay any property taxes. (4)
Referendum E provides one way, at a modest cost, for Colorado to thank 100-percent permanently disabled veterans for their service.
2) The money that Referendum E saves qualifying veterans can improve their quality of life. Despite existing government benefits, veterans still have unmet financial needs that are tied to their disability.
Unlike most other citizens, 100-percent permanently disabled veterans have very limited opportunities to improve their quality of life through employment and other means. (5)
Referendum E is an opportunity for the state to at least partially offset this economic disadvantage.
Arguments Against:
1) Referendum E is a special interest tax break that benefits less than one-twentieth of one percent of all Colorado residents. When one group benefits financially from a tax reduction, other taxpayers must pay. If the state can afford to reduce taxes for certain taxpayer groups, it should reduce taxes for all taxpayers. Referendum E further singles out a portion of the taxpayers it proposes to help by reducing taxes for 100-percent disabled veterans who are financially able to own homes. Disabled veterans who do not own a home do not benefit from this proposal. (6)
2) Because veterans were in the service of the federal government, the responsibility to meet the financial needs of veterans rests with the federal government. By creating a new state program for a small group of veterans, Referendum E interferes with the balance of benefits set by the federal government. In addition, the recent focus on international conflicts may lead voters to believe the state is providing a benefit to only those veterans who were injured in a combat zone when in fact the injury may have resulted while on call or during a time when the United States was not at war.
Estimate of Fiscal Impact:
Referendum E increases state expenditures because it requires the state to reimburse local governments for reduced property tax collections. The state estimates that roughly 2,200 disabled veterans will qualify for the exemption and the average property tax reduction per veteran will be $466. Thus, the impact to the state will be slightly more than $1 million, beginning with the 2008 budget year.(7)
------------here's my assessment after 3 years study-----------
1. Notice no mention of unemployability, the disqualifier added by Colorado's legislators, DOLA or CDMVA, isn't in the Blue Book, but "disabled veteran" is clearly described. Voters are told the benefit we approve is for "Homeowners who have served on active duty in the U.S. Armed Forces and are rated 100-percent permanently disabled by the federal government due to a service-connected disability" and "100-percent permanently disabled veterans have very limited opportunities to improve their quality of life through employment and other means. The more exact term for this is "total disability for individual unemployability." or TDIU. It is total, and it is permanent. TDIU and 100% schedular disability ratings are about 8% of VA Disabled veterans (TDIU and 100% schedular) are about 8% of VA disability ratings. Nationwide, there are about 800,000 such ratings.
Unemployability, as defined by VA, from their web site:
"VA Individual Unemployability if you can't work
If you can’t work because of a disability related to your service in the military (a service-connected disability), you may qualify for what’s called “Individual Unemployability.” This means you may be able to get disability compensation or benefits at the same level as a Veteran who has a 100% disability rating.
Am I eligible for disability benefits from VA? You may be eligible for disability benefits if you meet both of the requirements listed below.
Both of these must be true:
You have at least 1 service-connected disability rated at 60% or more disabling, or 2 or more service-connected disabilities—with at least 1 rated at 40% or more disabling and a combined rating of 70% or more—and
You can’t hold down a steady job that supports you financially (known as substantially gainful employment) because of your service-connected disability. Odd jobs (marginal employment) don’t count."
TDIU is total, and it is permanent. TDIU veterans are actually not able or even permitted to work because VA has examined them and determined that their combination of service-connected disabilities make it impossible to do so. VA even monitors IRS and Social Security records to double-check veterans awarded this disability rating, although vets are permitted odd jobs. Vets with the "regular" VA rating of 100% disability are permitted to work and encouraged to try doing so if possible for good mental and physical health and for economic security.
2. The total veterans and qualified survivors is currently 5858, compared to 245,000 receiving the senior exemption, with an annual budget impact of $3,524,000 vs. $136,000,000 for seniors.
3. Colorado ranks just a modest 25th among the states in veterans' benefits. Many studies have proved the fact that the more veteran-friendly a state is, the more likely to benefit from veterans living there. The money and the needs of Colorado's military retirees, and disabled vets plus survivors created over 26,000 good Colorado jobs in 2020. As for the disabled veteran survivor property tax exemption, nobody expects a veteran's survivor to relocate here to save $645. Those who do from whatever state, are to be honored and eligible for the exemption we seek. Disabled veterans bring into Colorado VA checks for almost $2,000,000,000 to spend on food, clothing, shelter, medical care entertainment, travel – the cost to Colorado in its meager state benefits is a pittance against this. Totally disabled veterans' dependence on state public assistance is insignificant.
4. Currently nineteen states (up from six in 2006) waive all property taxes for disabled veterans and survivors. Most more states offering an exemption larger exemption offer more than Colorado. Only a few offer no exemption.
5. A TDIU veteran receives at most $37,570 per year, still a low range where many agencies assist families. This will be the vet's income throughout his/her life with no pay raises, no promotions, nothing beyond the VA monthly check. When most non-disabled veterans and civilians are approaching retirement age, having acquired wealth, home, car, etc., the average income is over $57,000 per year, leaving disabled veterans far, far behind. The younger the veteran when disabled, the further behind with age. Bankruptcies are common.
6. Home ownership is usually out of reach. However, any savings helps them afford to qualify for and continue to afford their own homes.
7. A TDIU veteran receives at most $37,570 per year, still a low range where many agencies assist families. This will be the vet's income throughout his/her life with no pay raises, no promotions, nothing beyond the VA monthly check. When most non-disabled veterans and civilians are approaching retirement age, having acquired wealth, home, car, etc., the average income is over $57,000 per year, leaving disabled veterans far, far behind. The younger the veteran when disabled, the further behind with age. Bankruptcies are common.
