DRAFT 2022 BILL EXTENDING PROPERTY TAX EXEMPTION TO "Gold Star Spouses," SURVIVORS OF ACTIVE DUTY MILITARY

This is just an untutored amateur's rough draft following the legislation guide  of a bill that might work to qualify Gold Star Wives for the property tax exemption by legislation instead of a constitutional amendment. Otherwise, an amendment would take a super-majority of the legislature to recommend to the voters.

            

                                                  A BILL FOR AN ACT

CONCERNING THE DISABLED VETERAN SURVIVOR PROPERTY TAX EXEMPTION FOR SURVIVING SPOUSES, AND IN CONNECTION THEREWITH ESTABLISH QUALIFICATION OF A SURVIVING SPOUSE OF A SERVICEMEMBER WHOSE DEATH WAS IN THE LINE OF DUTY WHILE IN THE ARMED FORCES OF THE UNITED STATES OR IN THE COLORADO NATIONAL GUARD ACTIVATED FOR STATE CONTINGENCIES, BY EXTENDING THE DEFINITION OF “OWNER-OCCUPIER PREVIOUSLY QUALIFIED FOR A PROPERTY TAX EXEMPTION”

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                                                               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.)

Colorado provides the Disabled Veteran Survivor Property Tax Exemption to a survivor of a totally disabled veteran “previously qualified for a property tax exemption,” per § 39-3-203(1.5)(a), Colorado Revised Statutes. The requirement that the veteran be in receipt of the exemption at the time of death necessarily denies the exemption to the survivor of an active-duty servicemember whose death was in the line of duty. Survivors of Colorado National Guard servicemembers whose death was in the line of duty while activated for state contingencies are also denied the exemption. This is contrary to the clear intent of the 2006 Referendum E in which voters approved the exemption to “one hundred percent permanently disabled due to a service-connected disability,” a line of duty death also being, in effect, a total and permanent disability.

This bill extends the definition of “owner-occupier who previously qualified for a property tax exemption” to include servicemembers whose death was in the line of duty while in the Armed Forces of the United States or in the Colorado National Guard while activated for state contingencies, thereby qualifying those surviving spouses for the same property tax exemption as the surviving spouse of a previously qualified disabled veteran.

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

SECTION 1. In Colorado Revised Statutes, 39-3-203, amend (11) as follows:

The owner-occupier is the surviving spouse of an owner-occupier who previously qualified for a property tax exemption for the same residential real property under subparagraph (I) of this paragraph, ONLY FOR PURPOSES OF § 39-3-203(1.5)(a), COLORADO REVISED STATUTES, THE SURVIVING SPOUSE WHO HAS NOT REMARRIED OF A SERVICEMEMBER WHOSE DEATH WAS IN THE LINE OF DUTY WHILE IN THE ARMED FORCES OF THE UNITED STATES OR IN THE COLORADO NATIONAL GUARD WHEN ACTIVATED FOR STATE CONTINGENCY;” and

(b) The owner-occupier has completed and filed an exemption application in the manner required by section 39-3-205 and the circumstances that qualify the property for the exemption have not changed since the filing of the application.  Under no circumstances shall an exemption be allowed for property taxes assessed during any property tax year prior to the year in which an owner-occupier first files an exemption application.

(1.5)(a) For property tax years commencing on or after January 1, 2007, 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 a qualifying disabled veteran shall be exempt from taxation if:

(I) The owner-occupier has completed and filed an exemption application in the manner required by section 39-3-205 ;  and

(II) The circumstances that qualify the property for the exemption have not changed since the filing of the application.

(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)  OR SURVIVING SPOUSE WHO HAS NOT REMARRIED OF A SERVICEMEMBER WHOSE DEATH WAS IN THE LINE OF DUTY WHILE IN THE ARMED FORCES OF THE UNITED STATES OR IN THE COLORADO NATIONAL GUARD WHEN ACTIVATED FOR STATE CONTINGENCY, is exempt from taxation. 

SECTION 2.. In Colorado Revised Statutes Title 8. Labor and Industry § 8-14.3-202. Definitions, amend (8) as follows:

“Veteran” means a person who actively served in the United States armed forces and WHO IS MISSING IN ACTION OR WHOSE DEATH WAS IN THE LINE OF DUTY or who was discharged or released under conditions other than dishonorable, in accordance with U.S.C. title 38, as amended.  “Veteran” includes a person serving or who served in the National Guard or as a reservist

BREAK - --WHAT ADMINISTRATIVE DETAILS ARE NEEDED HERE?--BREAK

SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2022, if adjournment sine die is on May 6, 2022)

 

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INFO:

EVIDENCE TO SUBSTANTIATE  APPLICATION:

1. MARRIAGE CERTIFICATE OR EVIDENCE OF CIVIL UNION

2. DEATH CERTIFICATE, OR VA OR DOD STATEMENT 

3. EVIDENCE OF PROPERTY OWNERSHIP BY SERVICEMEMBER OR SPOUSE

4. COMPLETED APPLICATION

NOTE: survivors of active duty servicemembers separated for total disability or rated by VA as 100 per cent permanently and totally disabled and who then die are already eligible for the exemption.

Seeking support within United Veterans Coalition for Gold Star Wives Property Tax Exemption

Given that Colorado's United Veterans Coalition requires unanimous agreement on a legislative objective, it seems best to begin asking the various member organizations for a chance to discuss Gold Star Wives property tax exemption. As I understand the process, issues are put forward in June to begin consideration and the agenda is decided upon in November. 

The American Legion has already advanced its resolution asking UVC to consider the Gold Star Wives property tax exemption. Efforts are also underway to discuss the issue with other groups.  UVC has to balance the many concerns it faces, and Gold Star Wives property tax exemption is but one that bears discussion. 

That discussion has already begun with some veterans' organizations and will continue by reaching out to each organization's UVC member representative. Their input is important but the only suggestion thus far is to limit the effort within UVC, respecting its role as the principal voice of Colorado's 460,000 veterans.

It is still unclear about whether a constitutional or legislative solution will be required, but a couple drafts for both approaches are ready for review. Hopefully, the legislature can act and avoid the difficult process of a constitutional amendment. That's a question for the Legislative Council Staff or the Office of Legislative Legal Services but not right now: As with meeting with our legislators, it is necessary to wait until this very busy session wraps up in early June.

 

Colorado's abandoned 100% disabled veterans – those rated "Total Disability for Individual Unemployability (TDIU)"

Voters approved Referendum E in 2006. We were asked whether a partial property tax exemption should be offered totally and permanently disabled veterans. We approved. But we didn't get what we voted for, not by half.

VA has two kinds of total disability awards – "TDIU" for total disability for individual unemployability, and 100% service connected permanent and total.

VA may increase certain veterans' disability compensation to the 100 percent level, even though VA has not rated their service-connected disabilities at that level. To receive the supplement, termed an Individual Unemployability (IU) payment, disabled veterans must apply for the benefit and meet two criteria. First, veterans generally must be rated between 60 percent and 90 percent disabled. Second, VA must determine that veterans' disabilities prevent them from maintaining substantially gainful employment—for instance, if their employment earnings would keep them below the poverty threshold for one person. 

Unhappily, our legislators really tightened up qualifications and locked out every single TDIU veteran. TDIU vets are carefully evaluated by VA, have at least one 60% permanent disability and a combination of factors making it physically impossible for them to work. Ever. Both vets are referred to as 100% VA disabled, but TDIU veterans have been refused the Colorado disabled veteran property tax exemption.

Consider the leeway given the legislature in the tax code. Clearly, the legislators had/have the power to follow Referendum E "in a manner that gives its words their natural and obvious significance." Must we suppose that totally and permanently disabled aren't "natural and obvious" enough words for TDIU?

Colorado Revised Statutes 2016, Title 39-3-202

TITLE 39(c) In enacting legislation to implement section 3.5 of article X of the state constitution the general assembly has attempted to interpret the provisions of section 3.5 of article X of the state constitution in a manner that gives its words their natural and obvious significance;

VA OIG 19-00227-226, Page ii, September 10, 2020

"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",

   

Gold Star Wives' Property Tax Exemption: Our goal is UVC support for enactment in 2022!

 

LEGISLATIVE ACTION: Two possible changes to Article X Section 3.5 to add Gold Star Wives' property tax exemption

Perhaps adding Gold Star Wives to the Disabled Veteran's Survivor Property Tax Exemption can be done in a couple different ways. A constitutional amendment is much harder than in earlier years, but legislation or regulatory action might be easier. It bears looking into!

Here are two possible legislative actions, easy-to-use keys we might use by hacking the definition of "disabled veteran" to encompass an active duty death of a soldier, sailor airman or Marine, or a Colorado National Guard member ordered to active state duty:

SECTION 1. In Colorado Revised Statutes, 39-3-202, amend 3 (3.5) as follows: 4 39-3-202. Definitions. As used in this part 2, unless the context 5 otherwise requires:

(FIRST possible revision)

(b)  The owner-occupier is the spouse or surviving spouse of an owner-occupier who previously qualified for a property tax exemption for the same residential real property under paragraph (a) of this subsection OR THE SURVIVING SPOUSE OF AN INDIVIDUAL WHO DIED IN THE LINE OF DUTY IN THE UNITED STATES ARMED FORCES OR IN THE COLORADO NATIONAL GUARD WHILE ACTIVATED FOR STATE CONTINGENCIES

SECOND possible revision)

(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. FOR PURPOSES OF THIS SECTION, AN INDIVIDUAL WHO DIES IN THE LINE OF DUTY WHILE IN THE UNITED STATES ARMED FORCES OR THE COLORADO NATIONAL GUARD WHEN ACTIVATED FOR STATE CONTINGENCIES IS DEEMED A DISABLED VETERAN PREVIOUSLY QUALIFIED FOR A PROPERTY TAX EXEMPTION

 

SITREP: Report to the Colorado Gold Star Wives re: Disabled Veteran Survivor Property Tax Exemptiopn

Here's my 8 May update to the Gold Star Wives:

Good evening, 

I agreed to provide you an update of things of interest regarding the property tax exemption for Gold Star Wives. Here it is.

The first item is that some legislators and staff were of the impression Colorado might have upwards of a thousand survivors. This is wildly off from the estimate of 150 potential applicants that the Legislative Council Staff calculated in 2019 for Representative Kipp. With a modest budget impact of less than $100,000 this looks more and more reasonable.

I've asked for but haven't been able to get any information from UVC about GSW being a 2022 legislative objective, which is the timing you suggested when we spoke. 

Their gentle suggestion seemed to be that I should back off but that it would be okay to stay tuned to UVC web info. Rather than being so uselessly passive, silent and merely hopeful, it seems more appropriate to remain proactive within UVC and also follow UVC guidance to keep my elected representatives advised. It seems useful to get coalition members informed and supportive of your exemption now so it can be presented in June and voted on by this November – if I understand the UVC timing.

To that end, my American Legion post and district submitted an internal resolution that, if approved at our June meeting, informs the UVC of the Legion's request for placement on the 2022 objectives. Nothing more explicit, and all within UVC channels. If it fails to get UVC behind it next year as well, at least there was an effort.

As you and I agreed, National Guard troops who die when activated for state contingencies are referenced in this Legion resolution. I spoke with Guard and DMVA folks about the issue: a Guardsman's surviving spouse is protected with something like DIC but more generous at about $2800/month. It would be an unlikely event but if it ever does happen it absolutely right that their spouses be protected!

As you can read, the resolution doesn't actually do much in that it only directs the Legion's UVC delegate to ask the coalition to consider GSW. Details are left for the professionals to iron out if/when/however the coalition wishes:

RESOLVED, by the American Legion Department of Colorado) that 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 with a goal of implementation before 2023 

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As a Gold Star Family Member (CW4 Hank Carter, WWII, Korea, Vietnam,) this means a lot to me personally! In different circumstances it could have been my own GSW mom or my wife to be affected. It would affect survivors of crewmembers I've lost: Paul, Gabby, The Gif, Larry, Turcottte, Art, Bill, Bob, Arch, Fred and others.

If anything, I'm more concerned about this now than at our UVC banquet a couple years back when I introduced you and David Ortiz to then-Congressman Polis and to VA acting Deputy Secretary Scott Blackburn (our speaker that night.) This illogical distinction between GSW and disabled vets must be eliminated. If it had been done properly from the exemption's launch, each GSW would have saved over $8000 by 2022!

Whenever you have the time, I'd appreciate a cup of coffee and some discussion. The clip below is what I did for an informative panel.

God bless!

American Legion District 4 Approves Gold Star Resolution for 2022 Action

The Fort Collins Legion post forwarded its unanimously-approved Gold Star Wives resolution to Legion District 4. This morning, the nineteen posts represented unanimously approved the resolution and District 4 now forwards it to Department.. The next step is to convince the department resolution committee and then, it will be put to all delegates. 

Then, the Legion delegate presents the issue to the United Veterans Coalition.

This is very encouraging. The resolution asks the UVC, where both the Legion and the Gold Star Wives are members, to advocate inclusion of survivors of active-duty military line of duty deaths in the Colorado Disabled Veteran Survivor property tax exemption.

We should know more about the Legion's Department of Colorado decision this month!

Opposition to extending the property tax exemption is considerable, with most concern being the tight state budget. Finding $100,000 shouldn't be impossible, given that the general category of homestead exemptions for seniors, disabled military and survivors is $149,000,000; we're asking only for 0.0006 of an increase. 

I realize there is also coordinated opposition by some worried veterans, concerned about the groundwork underway to advance this within UVC. Perhaps there's some area of conflict with other coalition priorities or conflict caused by an outsider (me) trying to get UVC help going forward – nobody has said.

I'm a little concerned about UVC suggestions that any concerns, even these about which I care deeply) are best left altogether to them. I don't want to stand aside to see whether or not the coalition opts to advance GSW. It would seem better strategy, with no conflict of my causing, to advocate among primary members for their support. As I read the 2019 email, the task is getting issues into consideration by June and decided upon for inclusion of GSW with the legislative agenda.

At this point, my objective is still (1) get UVC member organizations aware of the Gold Star Wives property tax exemption (2) get the unanimous UVC member organizations' approval to include this issue in the UVC 2022 state legislative agenda (3) bring this to the attention of interested state legislators to draft a bill and update LCS research from their 2019 review

It has been six years since UVC last considered Gold Star Wives when I asked. Nothing formal ever followed – no bills, no committee hearings. It simply disappeared without action back in 2016. For 2022, We must not meekly stand aside, passively watching and wondering if UVC will act in 2022. 

With the offer of a bill to be introduced in June, and with the hoped-for UVC leadership and support (rather than disappointment with me and undoing my efforts) the issue should have a chance of reaching the legislature, maybe even into law by the summer of 2022.

What we ask of UVC: Inclusion of Gold Star Wives in the state legislative agenda

 It is so simple.

 I hope that the United Veterans Coalition adopts the same simple resolution of support from 2016 for Gold Star Wives property tax exemption that UVC advocated in 2016, but with specificity as to active duty military survivors:

"Provide property tax exemption for surviving spouses of active-duty military line-of-duty deaths, similar to current exemption for seniors and 100% disabled veterans and their survivors. 

Farewell, MOAA and my 30-year membership.

No help here!

I've ended my 31-year membership in the Military Officers Association of America, resigning last week. Leadership's brief response to my request for support (copy below) or advice on property tax exemptions for surviving spouses of active-duty military wasn't helpful and didn't deal with the issue. The only answer was that the Colorado MOAA representative would decide whether to support or not, and whether to speak with me or not. 

There wasn't even an offer to bring my concerns about Gold Star Wives and Colorado's TDIU veterans to the MOAA representative.

In essence, I was told by leadership that my effort as a life member to express my need for MOAA help within the United Veterans Coalition was dependent upon and at the sole discretion of our lobbyist. 

MOAA's rep hasn't found an opportunity for me to discuss my hope for MOAA support within the Colorado United Veterans Coalition. My specific request was for MOAA to advocate veterans' issues as per our mission statement. I was sent an email on how the United Veterans Coalition handles legislative objectives but nothing regarding how MOAA could help, nor whether MOAA agreed or disagreed with my concern's solution.

Being denied my voice, permitted any discussion of my needs only upon invitation of another (no matter how kind or skillful or even supportive the lobbyist may be) is unacceptable. This is an MOAA gag. Are officers expected to wait around, mute and dependent on others deciding what's best for us?

Rather than have my affiliation as a member affirm MOAA inaction, disinterest, or perhaps even opposition to my needs, I have terminated my life membership. Now I hope to bring up the issue with other UVC-affiliated groups, seeking their support to place Gold Star Wives and TDIU veterans on its 2022 legislative agenda.

What I wrote MOAA to ask for help:

I'm a life MOAA member and ask your help. Good afternoon. I don't know the complexities of getting an MOAA resolution but hope for your advice. If appropriate, please consider this a motion under the appropriate rules for such a thing.

Our state restricts the small Disabled Veteran Property Tax Exemption to those whose spouse died while already in receipt of the exemption. This language makes it impossible for "Gold Star Wives: (name change underway to Spouses) to qualify because their troop died on duty and never came home to apply for the exemption An obvious and gruesome "Catch-22." 

There are about 150 or so widows/widowers not already covered under the Homestead Exemption. I'm not addressing Gold Star Wives' second category, spouses of vets who die after the military of service-connected causes because the current language includes them. Legislative Affairs Council estimates the cost to Colorado to be under $100,000.

I'd like to correct this via our membership in the United Veterans Coalition of Colorado. I assume we either agree upon supporting something as an informal process or some sort of resolution. I've drafted such a resolution for discussion.

Please help me correct this discrimination of active duty widows who should be receiving the same respect and honor as do Colorado's disabled veteran survivors.

Several years back, MOAA was much more responsive when I visited headquarters in Washington along with Dr. Jeanie Stellman from Columbia University's Mailman School of Public Health. MOAA and ROA, the American Legion, NPR, even Air Force Times all lent their support throughout the four year effort getting our crews C-123 Agent Orange coverage.

So, thanks again, MOAA, but farewell. I'm not able to travel to Washington again to find somebody in MOAA to hear me out.

May 2015 MOAA Magazine

 

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.