THE REST OF THE STORY: The Brief Life & Sudden Death of Colorado's Gold Star Wives' Tax Exemption

Not about to waste a perfectly good opportunity to turn virtually every veterans' wrath against them, yesterday the Colorado Senate Veterans Committee killed HCR21-1002. 

Ever budget-conscious, the committee's discussion indicated they felt it terribly unwise to "waste" $94,000 permitting widows of active-duty troops the same very modest property tax break now given widows of our 100% disabled veterans. Colorado has 140 widows of active-duty troops, all denied the small exemption because the awkward wording of the 2014 legislation restricted the exemption to widows of a veteran already getting the exemption.

Get it?

a) Die on active duty = no widow's tax exemption, or

b) Die after active duty as a disabled vet = widow gets exemption.

Troops call this kind of situation "bass-ack-wards." 

The rest of the story? After a unanimous House vote for HCR21-1002, it was killed because some senators might to do "something" next year to go to the voters in 2023 for some relief for the widows in 2024.

"Something" apparently being a larger overhaul of the entire property tax exemption issue that costs $150,000,000 each year. Gold Star Wives  (mostly elderly of World War II, Korean Conflict and Vietnam eras) would have added 0.00062 to that $150M.

I think the House could have chosen a better approach to the Gold Star Wives, something easier than the constitutional amendment HCR21-1002 required. The legislature took it on themselves to include widows of 100% disabled vets who were receiving the exemption by HB14-1373, not an amendment which is more difficult. 

All the House had to do was use 21 new words refine the definition of "qualifying veteran" to include "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.

Here's what it took to include survivors in the original 2014 bill:

39-3-203. Property tax exemption - qualifications. (1.5) (a.5)

FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2015, FIFTY PERCENT OF THE FIRST TWO HUNDRED THOUSAND DOLLARS OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF THE ASSESSMENT DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF AN OWNER-OCCUPIER WHO IS THE SURVIVING SPOUSE OF A QUALIFYING DISABLED VETERAN WHO PREVIOUSLY RECEIVED AN EXEMPTION UNDER PARAGRAPH (a) OF THIS SUBSECTION (1.5) IS EXEMPT FROM TAXATION.

Here's the redefined "qualifying veteran":

SURVIVING SPOUSE OF A QUALIFYING DISABLED VETERAN WHO PREVIOUSLY RECEIVED AN EXEMPTION or a member of the Armed Forces of the United States who died in the line of duty on active service UNDER PARAGRAPH (a) OF THIS SUBSECTION (1.5) IS EXEMPT FROM TAXATION.

And that's "the rest of the story!" 

Here's the Colorado Bar Association's statement:

"Gold Star Wives, survivors of active-duty servicemembers, are denied the exemption because the state constitution (Amendment X Section 3.5) allows the exemption to survivors of veterans already in receipt of the benefit. Colorado legislators apparently did not consider the issue of active-duty deaths. Loss of the servicemember on active duty precludes the 'already in receipt of the benefit' requirement. Proposed is a redefinition of a qualified recipient to include survivors of active duty servicemembers who die in the line of duty."

How interesting. And HOW CONFUSING! Gold Star Spouses Property Tax Exemption HCR21-1002 KILLED!

        Senate Veterans Committee Kills HCR21-1002

FLASH: Colorado House approves unanimously the bill HCR21-
1002 to submitting a constitutional referendum to the public to add 140 surviving Gold Star Spouses to the state's Disabled Veteran Property Tax Exemption. To repeat, unanimous House vote. Colorado's state representatives merely wanted to give active-duty widows the same too-small exemption disabled veterans' survivors get.

Every single Democrat and Republican voted for these 140 widows (no known husbands) to a total cost of only $95,000. HCR21-1002 then went to the Senate. These 140 widows would have represented 0.00062 of the $150M spent towards the entire homestead exemption program.

SECOND FLASH: To prevent the embarrassment of a Senate vote where Colorado's voters would see who voted against these Gold Star Spouses, the Senate killed the bill last night in committee. Straight party line, thumbs down and the bill died. Republicans YES, but every Democrat NO. I guess cautious senators felt Colorado would be overburdened if we didn't continue to ignore our dead soldiers' spouses.

I've been interested in advancing the Gold Star Wives property tax exemption for many years, urging action through the United Veterans Coalition. I've recently set the issue aside and for the UVC and Gold Star Wives to address the exemption for themselves – perhaps too much from me when I'm not a Gold Star spouse, only a Gold Star son.

Anyway...shot down behind closed doors. It feels like something's backwards here, as I'd have expected Democrats to have more concern than Republican. This was a vicious slap in the face to the House and to survivors of our troops who've died in the line of duty. The cost?  Less than $94,000 according to Legislative Council Staff.

Colorado Bar Association: Statement of Support for Disabled Veterans and Gold Star Wives re: Property Tax Exemption

 Colorado Bar Statement:

"The Military and Veterans Affairs Committee (MVA) of the Colorado Bar Association has affirmed its support for two state legislative objectives for 2022. Both involve the state's partial Disabled Veteran Property Tax Exemption, a constitutional benefit since 2007.

Gold Star Wives, survivors of active-duty servicemembers, are denied the exemption because the legislation (HB-14-1373) and enabling statute provides the exemption for survivors of veterans who had the benefit at the time of death. Using the text, "the surviving spouse of a qualified disabled veteran who previously received an exemption," 

Colorado legislators apparently did not consider the issue of active-duty deaths. Loss of the servicemember on active duty precludes the 'previously received an exemption' requirement. Proposed is a redefinition of a qualified recipient to include survivors of active duty servicemembers who die in the line of duty.

The second proposed legislative issue is veterans with VA Total Disability for Individual Unemployability, or 'TDIU.' Just like VA's other 100% disability veterans whose wounds or illnesses are rated totally disabling, these vets are 100% permanently and totally disabled, but currently are excluded from the exemption. 

Their disability is total, not per the VA rating schedule for the particular disability, but because their service-connected disability makes them unable to maintain employment. A TDIU veteran has been found by the VA to be physically or mentally unable to ever work again due to their service-connected disabilities. MVA will propose redefining 'disabled veteran to include TDIU veterans."

Helpful advice – and a word of caution

For some years I've advocated for Gold Star Wives receiving the same property tax exemption provided survivors of our totally disabled veterans. I've been feeling somewhat better and picked up some steam and got onto the bandwagon (I treasure mixed metaphors) to plow ahead to get some interest among others. 

That hasn't gone so well. Not only is it a difficult sell in a state economy battered by Covid, it is also just one concern among so many affecting veterans and our families. Fortunately, we in Colorado have our United Veterans Coalition to bring to bear 460,000 veterans' voices for legislators to hear,

The UVC does its job well. Their decades-long track record is proof.  The inclusion of a multitude of our largest and smallest veterans' organizations is another proof of the trust placed in UVC by us as veterans. One voice, 460,000 addressing agreed-upon legislative objectives.

But things can still be difficult. I've been concerned about bringing the issue up with the veterans' groups and my elected representatives, hoping for inclusion of Gold Star Wives' property tax exemption in the UVC 2022 legislative agenda. That's been hard, with less enthusiasm that I'd expected, and also hard because UVC has its well-established way of doing things. I knew little about UVC objectives and how to get UVC support, but when I asked for updates to information given me in 2019 before starting these current efforts my emails and calls went unanswered. Of course, nobody owes me any response at all - we're all volunteers in these veterans' projects.

You know the phrase: "Lead, follow or get out of the way!" In the vacuum of responses to my inquiries, I found nobody to follow and so I started seeking interest from others. The basic step was clearly getting UVC "primary members" behind what would have to be the unanimous coalition approval. Although I certainly have no attitude about "get out of the way," I didn't grasp the friction that my trodding on others' turf would cause as I reached out to primary coalition members.

So doing what I've been doing hasn't gone too well with UVC and what they're doing. Their opposition to my concerns about Gold Star Wives (I'm a Gold Star Family Member) is perfectly understandable because they are the experienced lobbyists, chosen for their dedication and successes.  GSW wasn't an objective in 2014, 2015, (it was an objective in 2016 as I asked), 2017, 2018, 2019, 2020 or 2022. They've mentioned to others that my urging for it to be a 2022 objective wasn't well-received.

I've appreciated their two emails of useful guidance after I directly asked them, " I guess I should just ask outright, should efforts on Gold Star Wives stop altogether? "

Okay. Hand gently patted and pushed away from the throttle. I take it the coalition's suggestion is to "follow the UVC legislative committee updates" to see if action happens to develop among member organizations before coalition approval in November Gold Star Wives' taxation. Also, the gentle inference is that approaching my legislators for interest in their help next year, and approaching groups like the Legion or Colorado National Guard wasn't helpful or welcome, thus the guidance instead of encouragement or advice to do ... anything.

Darn. I'd hoped, expected even, some hand-holding. Some guidance and encouragement. Referring back to their email of sixteen months ago was interesting, and the point was that I should have remembered it and been compliant with it. I guess I was influenced most by our leadership's 16 Nov 2016 instruction:

 "it is crucial that each of you reach out to your own State Senator and  Representative, and at least let him/her know that you are part of the UVC, and talk about how important it is that we support our veterans,

Oh, well.  Lesson learned about playing nice with others.

"...in keeping with our legislative agenda" - United Veterans Coalition Champions Veterans' Issues for Colorado. When the time is right, Gold Star Wives' concerns WILL be heard!

Four hundred and sixty thousand loud, strong voices.  

At the right time,, I'm hopeful these thousands of veterans will be convincing our General Assembly that Gold Star Wives should be eligible for the Disabled Veteran Survivor Property Tax Exemption.

But this just isn't the right moment for GSW property tax issues. The benefit will be sought in the near future, just not right now. And it wasn't right back in 2016 when our state legislative agenda included Gold Star survivors but no traction was found, not even a draft bill.

UVC is "the tip of the spear" for our state's veterans. Speaking as one voice, coordinating dozens of organizations state-wide. VFW, DAV, American Legion, PVA, MOAA, NCOA, ROA, AFSA, VVA, and so many others of which I'm not a member – Submarine Veterans, Gold Star Wives - if an association serves vets and their families, if an organization promotes the national defense, they're a welcome part part of UVC and their concerns are heard. The various needs and propositions are discussed by the membership, and those agreed by UVC are delivered to the decision makers, both state and federal, in the form of the annual focused UVC legislative objectives.  

Legislators in Denver and Washington listen carefully, hearing those thousands of UVC voices when the United Veterans Coalition speaks. Whether addressing an individual legislator, senate or house committee, or public forum like a town hall meeting or city council, the United Veterans Coalition commands attention, and rightfully so.

I know this. On a few occasions, I was a witness before the National Academies of Science or one of the house or senate committees, and authorized to speak on behalf of the UVC. UVC was firmly behind me as I sought Agent Orange benefits for C-123 veterans. We got all of Colorado's senators and congressional representatives together to pressure the VA, even to block presidential nominations from consideration until VA acted. Finally, we won on the merit of the issue and UVC strength. 

We won the four year battle and gained VA Agent Orange benefits for 2500 Air Force C-123 aircrew, maintainers and survivors. Until Congress acted on the Blue Water Navy group, this was the only time VA added a new Agent Orange exposure group, and the only expansion of Agent Orange benefits since 1991. With HB16-1444 we won property tax exemptions for Colorado 450 military retirees and their survivors who'd been medically separated from their service as 100% disabled, and in doing so we brought the legislation into agreement with our state constitution's Article X Section 3.5. 

Not only does the UVC present veterans' concerns to our legislator, UVC also prioritizes the multitude of issues and forms an annual legislative agenda for both state and federal issues.

The UVC legislative agenda is already firmly set for 2021, but has yet to be finalized for 2022. Whether or not Gold Star Wives' property tax exemption is identified as an objective is up to the primary members and lobbyists of UVC. The coalition sorts out our needs, identifies the possible, and prioritizes them. Presto, the annual legislative agenda.

At the right time, Gold Star Wives' property tax issue is likely to be addressed by the coalition. Admirably, the GSW members are patient and understanding, with full confidence in the coalition.

The timing for GSW isn't right for 2021. Complexities of state budget, coalition priorities. Strategy and resources – all must align, and then UVC will deliver for the members of Colorado's Gold Star Wives. Let's get together for Gold Star Wives' proper place on the UVC 2022 legislative agenda!

Colorado's Curious Management of its Disabled Veteran Property Tax Exemption, & the "Unemployability" Disqualification (updated May 12, 2021)

Five years ago I wrote about the curious sleight of hand employed to sell the voters on a worthy Colorado constitutional amendment but then the enabling legislation delivered a greatly watered-down statute. 

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. 

Because Colorado references the VA totally disabled rating everywhere, we should look at how VA itself describes a totally disabled veteran. Read carefully and compare to Colorado's absolute disqualification of TDIU vets from the Disabled Veteran Property Tax Exemption. Here is the VA Office of Inspector General's very appropriate definition:

"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

Clearly,  veterans with total disability, including TDIU, is what voters thought they were approving by votes for Referendum E back in 2006. So where did the Colorado prohibition of unemployability for the benefit come from?

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?