Disabled Veteran Property Tax Exemption: What A Convoluted History!

Amazing! And pretty disappointing, too, with what's been done to our veterans and
their survivors. 

Let's review the confusing history of this mess. Just follow the explanation of how we've tried but only partly succeeded in protecting our disabled veterans.

In 2014 the Colorado legislature passed HB14-1373 to include survivors of totally disabled veterans with the veterans and seniors over age 65 for the small, partial disabled veteran property tax exemption. This was a blatant modification of the state constitution without first bothering the voters for our okay. 

Please understand: We voters first created our state constitution and then authorized constitutional amendments. Years later the legislature took it on themselves (yes, for good reasons, of course) to make changes they felt useful by passing HB14-1373. Regardless of intent or outcome, this was a no-no and an unconstitutional action by the legislature: the legislature has no power to modify or change the constitution. The estimated cost was around $100,000.

They simply did it. Folks involved at the time today agree it "abused" the constitution but hey – they did it anyway.

Regardless of procedure, that was a good thing with a very small footprint, not likely to invite any challenge: Indeed, there has been none. I can't find any notice ever made about this "extra-constitutional" legislative action that added a few hundred widow(ers) to a program already attracting attention for its cost. I make mention of it only because it was done and it should be done again!

You see, the legislature passed SCR06-001 in 2006, then presented it to Colorado voters as Referendum E. We approved it overwhelmingly, extending the senior property tax exemption to a few thousand totally and permanently disabled veterans. The original version of that tax exemption covered only seniors and its genesis was HB00-1002. The legislature passed that in 2000 for presentation to the voters as Referendum A. It passed, with an estimated cost of just over a million dollars.

Those two referenda – A in 2000 and then E in 2006, made totally and permanently disabled veterans and seniors as the two categories of homeowners qualified for the property tax exemption. Then HB14-1373 added the veterans' survivors.

Let's review:
1. 2000, Referendum A + HB00-1002 = the senior exemption, apparently also including survivors
2. 2006, Referendum E + SCR06-001 + HB07-1251 = the disabled veteran exemption
3. 2014, HB14-1373 = the disabled veteran's survivor exemption
4. 2016, HB16-1444 = aligned the statute with the constitution, adding disabled military retirees' exemption 

HB21-1002: We must note the dastardly action by the senate in June 2021 rejecting the unanimous house bill for a referendum adding Gold Star Spouses to the disabled veteran property tax exemption. 

Survivors of military personnel lost in the line of duty are presently denied the exemption by a stupid and illogical technicality: The exemption recognizes only survivors of veterans who die while in receipt of the exemption. Dying in combat very obviously prevents a veteran from returning to Colorado to qualify for the exemption, so we deny it to the widow. Dumb in the extreme.

The senate's unpatriotic rejection dishonored Colorado but "saved" the state about $95,000.

"They just did it." Used statute to modify Article X Section 3.5 & added survivors

GOLD STAR WIVES:

HB14-1373 added surviving spouses of seniors and disabled veterans to the property tax exemption in Article X Section 3.5. 

That means the legislature modified a provision in the Colorado constitution without bothering with an amendment!

Oops.

That is "extra-constitutional." But it was done. Can we do the same "extra-constitutional" approach to add Gold Star Wives (spouses) to the survivors?

Colorado Voters Have a Long Memory - especially about how veterans and their survivors are treated

I believe Colorado's Democrat legislators have initiated the more important advances in veterans' benefits, but it would be wrong to conclude that either party is truly disinterested or uncaring. Democrats controlled the House and Senate in 2006 under a Republican governor and are together credited with getting Referendum E in front of the voters. There, the constitutional amendment found overwhelming support. This established the Disabled Veterans Property Tax Exemption in 2007 and reflected well on both parties.

Yet Democrats were particularly uncaring on June 7, 2021 when the Colorado Senate Veterans and Military Affairs Committee voted down HCR21-1002 (by pure party line vote). The bill had been approved unanimously by the House to correct an awkward problem in our Disabled Veteran Survivor Property Tax Exemption. 

This small property tax exemption was initially offered to totally disabled veterans and saved them about $640 a year. The Legislature updated the exemption with HB14-1373 in 2014 to provide for veterans' survivors who were already in receipt of the exemption. Repeat: the exemption was for survivors of a vet already receiving the exemption.

Sadly, that language overlooked the real-world tragedy that not all troops survive to come home to be veterans. Colorado's current tax statute denies the exemption to every widow of every servicemember lost in the line of duty while on active service.

Get the distinction? Get disabled but survive to come home and the exemption is there for your survivor. Sacrifice far more and die in the line of duty and your survivor gets denied the exemption. Widows from World War II, Korea, Vietnam and recent conflicts are refused this exemption because their spouses died on duty, rather than surviving to come home and "be in receipt." 

HCR21-1002 was going to fix that unfortunate wording of the statute so our 140 Colorado Gold Star Widows could qualify for the same small partial property tax exemption. But the opportunity to do the right thing on June 7 was shot down when every Democrat on the state senate's veterans and military affairs committee voted against the bill. There were some heartless phrases thrown around that "we'll have to look at this important issue during next session" and "let's get focused on this next year for something by 2024."

These Democrats might not have known than 80% of these widows are over 60 and 40% are over 65. They've done without the exemption due veterans' widows since losing their husbands in World War II, Korea, Vietnam and more recent conflicts. The state senate turned its back on these survivors.

The Senate made a mistake. Voters took note.

 

COLORADO SENATE DISHONORS ITS OWN RESOLUTION "HONORING" GOLD STAR FAMILIES

I'D CALL IT A JOKE BUT IT ISN'T.

One month ago the Colorado Legislature payed its respects to Gold Star Families* with a sweetly-worded joint resolution. Passed unanimously, the resolution praised the patriotism and dedication of families of Colorado's soldiers, sailors, Marines and Airmen who've died in the line of duty:

Right. Uh-huh. Fellow Coloradans, SJR21-010 wasn't worth the postage to mail it to the survivors. Neither was it enough of "an expression of profound gratitude and respect" to move the mighty senators to more carefully consider HCR21-1002. It certainly wasn't worth the esteemed committee of law-makers' bipartisan review. Instead, on a party-line vote, all Dems voted NO and the outnumbered Republicans voted YES.

What did they shoot down? Spending $93,000 to qualify just 140 Gold Star Widows the same small partial property tax exemption we give thousands of widows of our 100% disabled veterans. The situations are quite similar, except the disabled vets made it home and qualified for the exemption; dead servicemembers could not. The total impact of the Gold Star Widows would have been a "whopping" 0.00062 increase. Wow, how generous (not.)

That's the only difference. The tax law states for survivors to have the disabled veteran property tax exemption, their disabled veteran must have received it before his/her death. As you can imagine, a death on active-duty, and in the line of duty, pretty much precludes coming home disabled to apply for and get the exemption. 

Perhaps legislators who crafted the Seniors' and Disabled Veterans' Survivor Exemption (HB14-1373) did not pause to consider that not all troops make it home. Most do. A few of them are 100% disabled and can qualify for the exemption and so will their survivors. However, the very few who will never come home will never qualify their survivors only because they died first.

HCR21-1002 was an effort to correct this macabre injustice in our tax laws. I'm a totally disabled veteran in receipt of the exemption, and my wife will keep it as my survivor. Had I died in service she would be disqualified. Only because of awkward wording on our tax code.

June 7 was an opportunity to make things right, and to honor the resolution Colorado passed to respect Gold Star Families. June 7 was a missed opportunity to make good law. Shame on those who thought otherwise.

The Senate committee may not have realized that 90% of these widows are over 57, and 40% over age 75.  Or if the senators did know, perhaps they were appreciating that, given the survivors' average age, putting off a solution for their property taxes will have nature taking her usual course. The Senate can anticipate that year by year, for as long as the Senate is able to prevent any relief, there'll be fewer and fewer Gold Star Wives surviving to take advantage of any exemption.

What might be the reasons Gold Star Wives might want to be included in the exemption if they happen to be senior citizens eligible right now?
1. sell the marital home and downsize
2. reduce housing costs to adjust to loss of spouse's income

3. conflicts in wills taxes, credit, or other important property details

4. selling home elsewhere to return to Colorado

5. purchase home for first time

6. inherit home from other than deceased spouse, or gift

7. situations I can't predict

SHAME

Are 140 Gold Star Wives added to the current 489,000 homestead
exemptions just too, too much of a burden for the Great State of Colorado? No, not when we can also spend many millions on family planning for undocumented immigrants.

Someday solution: redefine "qualified veteran" to include a dead one. Add the words, "or a member of the Armed Forces of the United States who died in the line of duty on active service" in a new statute – one that respects and honors Gold Star Widows.

* NOTE:
1. There are two types of Gold Star Wives. First, a small number of survivors of servicemembers whose deaths were in the line of duty while on  active military service. This is the group proposed for the disabled veteran survivor property tax exemption.

2. The other group are survivors of veterans who die after active duty and whose service was 100% disabling. They are already qualified for the exemption.

We ALL must start reading the Colorado state constitution

Otherwise, we won't know what they're doing to us, or how.

Article X Section 3.5:

"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 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 one hundred percent permanent disability through disability retirement benefits or a pension pursuant to a law or regulation administered by the department, the department of homeland security, or the department of the army, navy, or air force"

 I admit to a period of unAmerican cowardice. I failed to to stand up for myself, and in that failure also failed other Colorado veterans who were in the same situation. We were about 450 totally disabled military retirees, and as you can read in the clip from the Colorado constitution above, we have a property tax exemption. My failure was when DOLA and CDMVA denied me the exemption and disregarded the state constitution. In effect, these agencies and the legislature nullified parts of Article X Section 3.5.

I pointed out the constitution but was rebuffed – "No, we follow the law," insisted DOLA. There was no argument about the law being flawed, having left out those last fifteen words that clearly included us, clearly providing us a constitutional protection and benefit. Too bad, was the state's attitude. Go talk to your legislator. They failed to uphold the constitution or do anything about it. In fact, they NEVER did anything about this obvious conflict except make sure taxes were demanded and paid. Between 2007 and 2021, the estimate is that $3.825,000 was unconstitutionally taxed from these veterans.

My cowardice was in paying the tax even without the exemption. I have no excuse because I'd read both the law and the constitution's Article X Section 3.5, so I knew better. But I caved. My failing was to politely stand up for my constitutional rights,  Not as some "oath keeper" or such, but merely as a quiet American citizen.

 

My fear? Refusing to pay might cost me more somehow, in fines or something. In the extreme I might lose my house, get something on my credit report or some kind of legal trouble even while being passively resistant. "No. It's only a few hundred dollars," I reasoned.

But that was no reason. I abused the constitution itself. No excuse. I let the state, my fellow veterans and all Colorado citizens down by my inaction. Trying to fix it after I caved is no redemption. I faced some really wild and weird stuff flying in crates ranging from the T-33 and C-47 to Fat Albert (C-5,) and 26 years of military service but never caved or soiled my trousers; this time, I folded like a baby. 

I should have paid all but the exemption value, let the state seize my home for non-payment of taxes, and then tried to defend my position in court.

The first and only constitutional I was faced with (state or federal,) I backed down. I paid my property tax in full because DOLA and CMDVA said I had to, despite our state constitution. They didn't do their sworn duty, and neither did I. My shame is the greater.

Why? I must not have truly believed what I thought about the constitution. In this instance, the state constitution but the principal is the same. Jefferson would be, probably is, ashamed of me. I am.

Colorado's Gold Star Wives' Catch-22

Catch-22

Just think about this. 

Colorado has a modest property tax savings just for totally disabled veterans, totally disabled military retirees, and for their survivors. I am referring to the Colorado Disabled Veterans Survivor Property Tax Exemption program. Saves about $600 each for those qualified, with a goal of helping disabled vets and survivors get or keep homes after suffering lifelong total disabilities in the Nation's service.

Think about this also: Colorado refuses this very modest property tax exemption to survivors of military who die in the line of duty on active federal service. None of my county's 245 recipients of the exemption is a war widow or widower, AKA a "Gold Star Spouse."  In fact, there isn't a single one in all of Colorado.

Surviving spouses of active duty military lost in the line of duty just don't qualify. Until we change the rules, they never will. The core problem is that the rules limit the property tax exemption to the disabled vet, and then the survivor if and only if the veteran was receiving it at the time of death.

If you're a civilian, take it from me; While in the process of crashing your airplane, sinking your ship, or getting a bullet through your helmet, it is awkward to first take a few moments out before dying to apply for and be approved for the Colorado exemption. Actually, time does not permit.

You've heard the phrase "Catch-22" for a no-win and absurd situation, a paradoxical situation from which an individual cannot escape because of contradictory rules or limitations. We've certainly invented a whopper with Colorado Constitution Article X Section 3.5 and HB14-1373. 

This macabre situation boils down to coming home alive but disabled after service and save a little money on your property taxes versus dying on duty so your spouse can pay more property taxes. What great choices!

Not that any soldier, sailor, airman or Marine gets to make such a choice; too often, guys in uniforms much different than ours decide that for us by shooting or launching RPG's in our direction. 

Next stop: either:
  (1) the nearest field hospital or
  (2) an aluminum casket with Old Glory across it.

Catch-22. Colorado's Disabled Veteran Survivor Property Tax Exemption.