TDIU = actual VA TOTAL disability rating

A previous director of the Colorado Division of Military and Veterans Affairs wrote me six years ago to state that one reason Colorado denies TDIU veterans the state partial property tax exemption is that the state law requires a VA TOTAL DISABILITY RATING, and he explained that TDIU is somehow "only" compensation at the 100% rate and not an actual disability rating. 

CDMVA hasn't made any visible effort to care for TDIU veterans the same as it cares for 100% schedular. A variety of reasons have been tossed out but as for TDIU being an actual disability,VA disagrees with CDMVA.

From Title 38, Chapter 4 (§ 4.15 Total disability ratings)

"It is the established policy of the Department of Veterans Affairs that all veterans who are unable to secure and follow a substantially gainful occupation by reason of service-connected disabilities shall be rated totally disabled"

Doesn't ANYBODY in Colorado care about TDIU Veterans?

I've found encouragement about veterans with TDIU (total disability for individual unemployability) only from the Colorado Bar Association's Military and Veterans Affairs Committee, and the United Veterans Coalition.

Outside of those two worthy organizations who "really get it"...zero interest among Colorado's citizens for the needs of the state's totally and permanently disabled veterans of honorable service who are rated "TDIU."

Not your problem, right? You're probably not a vet although perhaps the child or grandchild of one. You're probably not the father of a young man or woman in service. So...simply not your problem.

TDIU veterans make up about 30-40% of Colorado's totally disabled veterans. VA has two categories: 100% rated, for vets whose injuries are typical for the type injury suffered, and TDIU, for vets whose injuries are worse than typical for the type injury suffered.

Colorado permits the 100% rated vets our too-small partial property tax exemption, and specifically refuses it to TDIU veterans.

Are these veterans any different than each other? Yes, because the TDIU vet is specifically evaluated as having a worse-case type injury rather than "typical," and is thereby totally and permanently disabled and never able to work again.

Why do we treat them differently? Ask your legislator if they can explain...I can't. I care, but only a rare handful in the legislature seem to care.

Not their problem. They really don't care.

 

Rough Draft: Colorado Disabled Vet Property Tax Exemption for "Total Disability for Individual Unemployability" Veterans

FIRST, background on the two VA 100% disability ratings. One is straightforward – total disability rating based on one or more service-related injuries that total 100%. The other is less simple – it is "Total Disability for Individual Unemployability" – TDIU. The VA treats them equally, except the TDIU veterans are specifically rated for, and verified for, a permanent inability to work based on their totally disabling service-connected injuries.

NEXT, how will we do this?  Along with the Military and Veterans Affairs Committee of the Colorado Bar Association, we feel Colorado should include 100% totally disabled veterans awarded VA total disability for individual unemployability (TDIU) in the definition of "qualifying disabled veterans for a property tax exemption for qualifying seniors and disabled veterans." by amending 2018 Colorado Revised Statutes, Title 39 - Taxation Property Tax, Article 3 - Exemptions, Part 2 - Property Tax Exemption for Qualifying Seniors and Disabled Veterans § 39-3-201. Legislative declaration.
(Universal Citation: CO Rev Stat § 39-3-201 (2018))

I'lI refer in my writing the US Department of Veterans Affairs' terminology because Colorado took took specific steps with HB16-1125 to align our state terms with the VA. I take note of the fact the VA's official TDIU phrase is is "total disability rating for compensation based on unemployability of the individual."

VA's own Inspector General explains TDIU: 

"Individual unemployability may be established when a veteran is unable to secure or retain employment by reason of a service-connected disability or disabilities. A veteran may be unemployed or unemployable for a variety of reasons. When VARO staff deem a veteran is unemployable due to service related disabilities, the veteran is entitled to Individual Unemployability (IU) benefits. In such cases, disability compensation payments are elevated to the 100 percent rate even if the medical condition(s) are evaluated as less than 100 percent disabling. In order to continue disability payments at the 100 percent rate based on TDIU, veterans must confirm annually that he/she continued to be unemployed for service-connected medical issues.

"To be considered for TDIU P&T status, the law requires veterans to have a “total disability permanent in nature.” 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 the life of the veteran."

Statistics: Of all its veterans with a VA TDIU disability rating (355,000,) VA reports Colorado has approximately 4077 potential TDIU claimants under age 65. If qualified for the exemption there'd be an additional annual impact to Colorado's budget of $2,642,000. Colorado isn't being particularly generous, considering sixteen other states waive waive all property taxes for totally disabled veterans; none have TDIU restrictions – except Colorado.) Our state ranks an unimpressive 27th in the value of veterans' state benefits.

More stats: The Census Bureau reports that the veteran population declines about 2.5 million each year, thus Colorado's 4622 potential TDIU claimants can be expected to decline at about the same rate, for a small reduction in the fiscal impact each year.

• With our wars winding down, both types of VA 100% disability ratings will also decline. Using Census and VA data, we can expect new veterans with 100% disabilities to be less than 75% of what we've suffered annually since the First Gulf War.

• Not only will there be fewer exemption claimants because of the veterans' aging population and because of a smaller US military, but there will be also fewer additions to our number of totally disabled veterans than we've seen these last twenty years. This reflects moving from combat plus peacetime training to peacetime disabilities alone.

VA treats its two types of 100% VA disability groups the same, and Colorado does not. We offer veterans with a 100% permanent and total disability the state's partial Disabled Veteran Property Tax partial exemption, but someone added specific language to the program that bars all TDIU vets from the benefit that's worth, on average, only about $640 a year. While homestead exemptions for seniors will be increasing as the population ages, disabled veteran and veteran survivor exemptions will decrease slightly, unless America's overseas wars return to plague us.

(Note: 57% of TDIU vets are older than age 65. Compared to 100% schedular vets, they are somewhat younger. Older Veterans could be encouraged to chose between Disabled Veterans eligibility or the senior citizen homestead eligibility (13% qualify for both)  but there'd be no real change to the state budget.

We voters authorized the disabled vet property tax exemption by approving Referendum E back in 2006. Reading the text of the proposed constitutional amendment understandably has most of us believing that every veteran with a VA 100% permanent disability rating is qualified for the exemption:

"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.

The Blue Book expanded on this, just in case citizens couldn't fully understand we were considering 100% disabled veterans:

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.

 

Later, language was mysteriously added to the enabling statute and regulations by the legislature to specifically bar totally disabled vets with TDIU. DOLA explained this was "the request of some legislators:"

"VA unemployability awards do not meet the requirement for determining an applicant’s eligibility."

TDIU is a way for the Department of Veterans Affairs (VA) to compensate totally and permanently disabled veterans at the 100 percent rate who are actually unable to work solely because of their service-connected disability, although their rating according to VA’s Schedule for Rating Disabilities (Rating Schedule, or "schedular") does not reach 100 percent but is nonetheless uniquely totally disabling. Nationally, about eight percent of disabled veterans have injuries or illnesses that left them even more disabled than provided for in VA charts.  Remember: all VA ratings reflect the degree of impact an injury or illness have on the ability to work. Both 100% schedular and TDIU vets are rated precisely on that basis.

TDIU is based on a VA evaluation of the individual veteran’s capacity to engage in any substantially gainful occupation, defined as the inability to earn more than the federal poverty level. TDIU is rather than the schedular evaluation, based on the average impairment of earnings concept. TDIU takes occupation, experience and education issues as well as medical factors into account. Congress frequently reviews TDIU, and agrees that it is there "because each person is unique." VA agrees, telling Congress "Individual unemployability is necessary to overcome the inadequacies of the rating schedule" to rate a 100% totally and permanently disabled veteran. 

For Colorado to exclude TDIU vets from the property tax exemption is to penalize them for the manner in which they became totally and permanently disabled in the line of duty, just as did 100% schedular vets.

TDIU 100% disability ratings are assigned when the service-connected medical disability is even worse than VA disability tables recognize. TDIU is assigned when that disability or combination of service-connected disabilities are evaluated and the VA concludes the veteran is exactly what the initials mean – totally and permanently disabled, never expected to be able to work again and even certified as such each year after being rated TDIU. These veterans would work if they could. Most are working-age and two-thirds have dependents to care for.

100% schedular veterans have a similar arrangement because their disabilities may also surpass rating tables. For them, VA can offer "Special Monthly Compensation" and pay the vet beyond the regular 100% disability table. This addresses situations where vets may be unable to care for themselves, are homebound, etc.

TDIU does not refer to a veteran who is simply unemployed. Rather, a TDIU rating refers to military injuries or illnesses are even worse than typical (say, unsatisfactory hip replacements that are typically rated 60-90% but that are for a particular veteran in fact end up completely, totally, forever 100% disabling.) And not only factually disabling, but agencies such as Social Security or state rehabilitation services determine are so severe as to actually prevent employment.

This means that beyond military-related physical injuries that prevent them from participating in many of life's activities, they could have trouble with mental health issues such as suicidal tendencies, problems with speech, near continuous panic or depression, chronic confusion, impaired impulse control, and difficulty in adapting to stressful environments.

Perhaps Colorado's legislators added the issue of unemployability to reduce the fiscal impact on the state, or as their barrier to the property tax exemption because of a stigma tied to the word "unemployed." Because they can't work, TDIU vets aren't even eligible for unemployment insurance – while VA 100% schedular vets can get unemployment compensation when eligible! 

Such a negative attitude is misplaced as regards TDIU and it must be corrected. If Federal unemployment statistics only include in the definition of "unemployed'' those who are looking for, but can't (or won't) find work, Colorado legislators might have asked why shouldn't VA apply that same standard for TDIU benefit? Here are the facts.

 

The Department of Labor classifies persons as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Persons counted as "unemployed'' aren't working for a variety of reason, many under their own control. TDIU disabled veterans, on the other hand, are entitled to a total disability rating because they are in actual fact unemployable, i.e., found upon careful exam by VA, Social Security or state rehab agencies to be unable to engage in gainful employment precisely because and only because– of VA-rated service-connected disabilities; disabilities that render them 100% disabled, have rendered them unable to ever work. The word unemployed does not apply. At all. In fact, 100% schedular vets can work and can also be unemployed.

VA recognized the logic of "one size does not fit all" for its volumes of standard disability ratings. This was back in the 1930's when medical experts, legislators and VA administrators established the first TDIU-type ratings. For example, not all hip replacements leave a veteran between 40 and 90% disabling as VA tables describe: Rather, some exceptions occur taking the disability up to a totality, regardless of "typical" ratings. VA and others in the veteran community realize that TDIU veterans are typically worse off financially than 100% schedular vets, because TDIU veterans cannot work; VA and Social Security monitor them, watching for any earned income.

By contrast, 100% schedular vets are encouraged to work, for better financial, mental and medical health. A vet in a wheelchair might pursue rehabilitation education and find employment, without abusing disability benefits from VA. A TDIU veteran, on the other hand, cannot work and if somehow they were to do so in something beyond sheltered workshop-type earnings would lose their VA benefits. Often TDIU veterans are referred to state rehabilitation agencies or to certified rehabilitation counselors (CRC) for verification of their physical inability to work.

I have a personal perspective of TDIU and the Colorado Disabled Veteran Property Tax Exemption. For  seventeen years I was VA 100% TDIU and denied the exemption for the years I owned a home in Colorado. I was homebound, 100% disability retired by the Air Force and unable to work, cared for by others, totally disabled, treated for cancers, numerous operations, paralyzed in a wheelchair, and also VA rated "catastrophically disabled." And I was terminally ill.

I was denied our property tax exemption only because I was "individually unemployable" and specifically ruled out of Colorado's eligibility. In 2015, however, VA finally acted on decade-old disability claims and appeals, and I was suddenly 430% VA service connected combat-related disabled (actual number, but VA "math" tops out at 100% regardless of the total of all disabilities.) My VA compensation was retroactive as was the effective date of my 100% disability, but Colorado blocks any retroactive tax exemptions. The VA corrected its error retroactively but Colorado cannot. I guess I'm still terminally ill but not much has progressed in the wrong direction lately – no complaints here!

CONCLUSION: VA has two categories of veterans who, in the line of duty, suffered injuries or illnesses leaving them 100% permanently and totally disabled for life. 

• The first group includes vets whose disabilities are, or add up to 100% per the standard charts uses for the typical severity of those disabilities. Colorado respects those veterans and offers a partial property tax exemption.

• The second group, Total Disability for Individual Unemployability (TDIU) includes also 100% disabled vets, servicemembers who have a very severe 60% disability or severe disabilities totaling 70%, but the particular severity of their illnesses or disabilities – their line of duty injuries – goes beyond the VA standard charts to total disability. They are not unemployed; they are unable to be employed! VA rates them as 100% permanently and totally disabled veterans. Colorado might respect these 100% disabled veterans who suffered severe illnesses or injuries in the line of duty, but Colorado saves money by illogically and unkindly excluding them from the partial property tax exemption we voters thought we were approving with Referendum E in 2006.

So that leads up to our solution. Let's update the statute defining "qualified veteran" to specifically include the TDIU veteran! Here's a proposed draft of such a bill.

DRAFT BILL– UVC GOALS & OBJECTIVES: ESTABLISH TDIU VETERANS' BENEFIT

First Regular Session 

Seventy-fourth General Assembly

STATE OF COLORADO

INTRODUCED

LLS xxx                            SENATE BILL 22 -xxxx

SENATE SPONSORSHIP

 HOUSE SPONSORSHIP

 _____________________________________

Senate Committees:

House Committees: 

 ___________________________________                         A BILL FOR AN ACT

CONCERNING PROPERTY TAX EXEMPTION FOR QUALIFYING DISABLED VETERANS FOR ONE-HUNDRED PERCENT DISABLED VETERANS TO INCLUDE VETERANS WITH LINE-OF-DUTY DISABILITIES GIVEN A RATING BY THE US DEPARTMENT OF VETERANS AFFAIRS FOR PERMANENT, TOTAL DISABILITY FOR COMPENSATION BASED ON UNEMPLOYABILITY OF THE INDIVIDUAL. ____________________________________                                Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
CONCERNING THE INCLUSION OF ONE-HUNDRED PERCENT DISABLED VETERANS WITH LINE-OF-DUTY DISABILITIES THAT THE US DEPARTMENT OF VETERANS AFFAIRS HAS AWARDED A TOTAL AND PERMANENT DISABILITY RATING IN THE DEFINITION OF “QUALIFYING DISABLED VETERAN" FOR A PROPERTY TAX EXEMPTION FOR QUALIFYING SENIORS AND DISABLED VETERANS
________________________________

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1. In Colorado Revised Statutes, 39-3-201, amend (1)(a) as follows:

39-3-201. Legislative declaration. (1) The general assembly hereby finds and declares that:

 (a) Section 3.5 of article X of the state constitution, which was approved by the registered electors of the state at the 2000 general election and amended by the registered electors of the state at the 2006 general election, provides property tax exemptions for qualifying seniors and qualifying disabled veterans. TO MORE CLOSELY ALIGN WITH THE DESCRIPTION OF "DISABLED VETERAN" IN REFERENDUM E AS APPROVED BY THE ELECTORS IN 2006, "DISABLED VETERANS," IS DEFINED IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 2-2-208, IN SECTION 39-3-202 (3.5) AS "QUALIFYING VETERANS" FOR PURPOSES OF THIS PART 2;

SECTION 2. In Colorado Revised Statutes, 39-3-202, amend (3.5) as follows:

39-3-202. Definitions. As used in this part, unless the context  otherwise requires: (1.5) "Exemption" means the property tax exemptions for qualifying seniors and qualifying disabled veterans allowed by section 39-3-203.

 (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 AND MAINTAINED A service-connected disability that has been rated by the federal department of veterans affairs as a one hundred percent permanent disability OR HAS BEEN GIVEN BY THE US DEPARTMENT OF VETERANS AFFAIRS A PERMANENT, TOTAL DISABILITY RATING FOR COMPENSATION BASED ON UNEMPLOYABILITY OF THE INDIVIDUAL through disability OR 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.

SECTION 3. In Colorado Revised Statutes, 39-3-202, amend (3.5) as follows:

39-3-202. Definitions. As used in this part, unless the context otherwise requires: 

(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 AND MAINTAINED a service-connected disability that has been rated by the federal department  of veterans affairs as a one hundred percent permanent disability OR HAS BEEN GIVEN BY THE US DEPARTMENT OF VETERANS AFFAIRS A PERMANENT, TOTAL DISABILITY RATING FOR COMPENSATION BASED ON UNEMPLOYABILITY OF THE INDIVIDUAL  through disability OR 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.

SITREP 24 Apr 2021: Stalled??

Stalled? Well, certainly not much interest, although everyone'a so polite. After all, how can anyone not be compassionate towards Gold Star Wives?  What about the argument "Equal taxes for Gold Star Wives?" Does it just fall flat?

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.

Disappointed, but not pained enough by this gruesome distinction between the two types of military widows that anyone seems to be willing to do anything. Other issues crowd Colorado's United Veterans Coalition state legislative agenda for 2021, just as they have in 2016, 2017, 2018, 2019, and 2020. The other issues are important, of course, but so is unjust taxation of active duty widows. 

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.

Here's the sum of a couple thousand dollars spent trying to get some action and six years of writing, calling, visiting, emailing and glad-handing:
1. A single state senator's staff called me once and emailed me twice, and is still looking at this
2. A Zoom meeting on April 19 2021 to explain what I had on my mind, but "where is the money to come from" and "what legislators are behind this" and "we can't say anything until we see some legislation." So much for my hope of leadership from the Governor or Lieutenant Governor. It isn't that they are supposed to help, but it would help, Help a lot. I expected a genuine "that's terrible, and must be fixed because by God we don't treat war widows that way."
It never came. Instead, "thanks for your input, good bye." If there was help to be offered, or even mild encouragement, not that day. Nor any other day.
3. Two emails came back from folks directing the UVC state legislative effort. They explained GSW was represented in the coalition. It was good learn that CSW could submit the issue for next year's legislative objectives and that is was seemed "reasonable." Indeed. I thought UVC was the best place to turn for action. That's what I thought last month. That's what I thought six years ago.
4. I received an email from a wonderful state Gold Star Wife explaining that their organization is sensitive to Colorado's budget issues during 2020 and 2021, and they don't want to add to the tax burden of their fellow citizens. They are also grateful to the Colorado National Guard and feel survivors of Guard members killed on active state or federal service should be included in any property tax exemption.
They feel next year or 2023 might be a more appropriate time to seek action. I have to admire their patience and self-sacrifice, not only as Gold Star Wives but in the great caution they take to avoid a state budget impact. Willing to let my family have the small property tax exemption that rightfully should have gone to them as the first priority of the government and citizens of Colorado.

IS EXCLUSION OF UNEMPLOYABLE, PERMANENTLY AND TOTALLY DISABLED VETERANS WHAT WE VOTED FOR? What about "VA Unemployability" disability ratings?*

(From the 2006 Blue Cook - what we were asked to approve. See my 2017 here, and my 2021 analysis below*)

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.