Colorado recognizes sacrifices of our totally disabled veterans, awarding a partial property tax exemption to 100 percent totally and permanently disabled veterans. The U.S. Department of Veterans Affairs has two types of 100% disabled veterans – (1) vets with a 100% disability (2) vets with a total disability rated “Total Disability for Individual Unemployability” (TDIU.) VA benefits for the two types are identical, but Colorado’s TDIU veterans are unfairly denied the exemption
Correct! It seems our state legislature simply didn't contemplate the possibility of Colorado soldiers, sailors, airmen and Marines dying on active duty. That's why Colorado seem to have forgotten to offer our Gold Star Wives the same widows' benefits as we provide to survivors of totally disabled veterans.
That's unjust and plain WRONG! But not a single widow of an active duty service member is permitted the Colorado Disabled Veteran's Survivor Property Tax Exemption, a small exemption saving widows between $400-$600 a year.
Why? Our state constitution's Article X Section 3.5 permits the exemption only to widows of disabled veterans already in receipt of the benefit. Dying on Active Duty means not being able to complete the application process – because the service member died first!
This is Really an Amazing and Ridiculous Catch-22!
Why is the small property tax exemption of value to Gold Star Wives? First, it shows the state's respect and appreciation for the loss borne by these widows and widowers. The partial tax exemption would only save about $400 to $600. It would seem a minor issue to most of us.
But look at this from a Gold Star Widow's perspective. Circumstances vary, but if eligible widows can receive half of the service member's base pay. More than half of all military deaths are E-5 and below. An Army E-5 three-stripe sergeant would have a widow pension of under $2,000 per month.
The VA has "Dependents Indemnity Compensation," where if eligible a survivor might receive $1,300 per month. So, at best, our late sergeant's widow (or widower) hopes for a modest $39,000 per year.
How far does that go? In Colorado, the average home mortgage cost is $1,700 per month, and with typical associated costs like taxes, insurance, utilities and maintenance, a monthly cost of over $2,400 or $28,000 annually. You can do the math – that leaves $916 per month for food, transportation, insurance, clothing. Summary: Colorado Life did a thorough report on the money necessary to live in Colorado one needs $4,317.68 per month to live in Colorado if there is a mortgage involved. Oops – that leaves our widow short by over $12,000 per year. That's why the paltry $400-$600 partial property tax exemption is important.
The burden of property tax is a huge reason so many citizens can never afford a home, and that's even more true for military folks. That's why so few junior military own homes at the time of death and why so few widows are affected by this proposed tax exemption.
For me, I wish it was a total tax exemption as many states provide! The survivor of a service member who dies on active duty obviously have to make many, many compromises to live on $12,000 less per year than what "average" citizens need.
I think I'll do a poster based on the graphic above, but try to get the word count reduced.
Yes, it was nice of the legislature, but Colorado certainly did it on the cheap!
Our legislature once again has published a joint resolution (above) "honoring" survivors of Colorado's soldiers, sailors, airmen and Marines who died on active duty, often in combat, always in service to state and nation. A Gold Star Wife (sometimes the word "spouse" is used) has lost their spouse while on active military duty. The Gold Star Wives is an organization nobody wants to join - the cost in pain and suffering is just too high!
Clearly, it is an empty vessel. Nice words, quality paper, good typing and warmly appreciated by the widows, but completely useless in helping widows of Colorado's war dead address the financial impact of their loved ones' s death while on active military duty.
But nothing more substantial than a resolution with a budget impact of three sheets of paper. Nothing else. No benefits extended by a tight-fisted legislature during times when both government and the governed find themselves stretched financially.
The issue here is that for yet another year, our legislature had opted not to permit Gold Star Wives to receive the same small partial property tax exemption provided to survivors of 100% disabled veterans. How is this done?
In 2006 voters approved Resolution E and offered Colorado's veterans with a 100% VA disability a modest property tax exemption. Merely exempting $100,000 of the first $200,000 assessed valuation. Saves between $459-$600 – not much but it helps when trying to get by on the small VA widow's pension.
The benefit is only extended to the survivor of a disabled veteran already in receipt of the property tax exemption at the time of death. So, what about a widows of a troop killed in combat? Yup - there's the problem. A soldier dying in combat is obviously totally disabled by death but will never "be in receipt of the exemption at the time of death," as required by Article X Section 3.5 of the state constitution.
Here is an article about 5 things to know about Gold Star Spouses Day. I'll add another: Colorado denies survivors of active duty troops the property tax exemption provided survivors of totally disabled veterans,
Mandy Baker
Gold Star Spouses Day has its origins way back to World War I. The families of servicemen would fly banners and hang them in their windows. These banners had a blue star to represent a service member in uniform. But, if their loved one was killed in action, the color of the star was changed from blue to gold, thus notifying the community the ultimate price that family had paid for their country.
1. The Gold Star lapel pin was created in 1947
Following the popularity of the banners, in 1947, Congress approved the design for the official Gold Star lapel pin/button. This was introduced to represent service members who had died in combat. The pin takes the form of a gold star on a purple background.
2. The military bestows the Gold Star upon families
During the funeral service of the fallen military member, senior officers present the Gold Star Pin in addition to the national colors to the spouse or next of kin as a mark of respect for their sacrifice.
3. Gold Star Wives/Spouses Day began in 2010
In 2010, the first Gold Star Wives Day was observed. Two years later the Senate passed a resolution that codified Gold Star Wives Day, which was set to be observed April 5th each year. To make it more inclusive this was changed later and renamed Gold Star Spouses Day.
4. Gold Star Spouses Day raises awareness
Gold Star Spouses Day brings awareness of the sacrifices and grief these spouses have faced in the name of their country. However, possibly more importantly, it brings awareness for the Gold Star survivors themselves of the large network of resources and assistance that is available to them. A few examples of the resources available to these spouses are: Tragedy Assistance Program for Survivors (TAPS), scholarship resources which include the Pat Tillman Scholarship and the Fisher House Foundation Scholarship for Military Children, in addition to the Army’s Survivor Outreach Services (SOS).
5. Gold Star Spouses Day is observed in many ways
While Gold Star Spouses Day is not a national holiday, there are many installations that have their own programs to observe this day. Many of the installation observances focus on the military fitness and lifestyle. For instance, there are quite a few remembrance 5Ks which are run on April 5. There are also remembrance efforts seen online and on social media. One such effort is the Facebook campaign which urges Gold Star families to share photos and memories of their fallen loved ones.
While Gold Star Spouses Day is one day set aside each April to acknowledge the sacrifices of these military family members, their grief and loss is something that should be remembered each and every day. These special families have lost a loved one in the name of freedom, in the name of the United States. Their family member willingly fought, served and gave that ultimate sacrifice. This is something that should never be overlooked or forgotten, rather is something that should be acknowledged every day. Without these tragic losses, Americans would not have the freedoms they hold so dear, nor would America be the proud country that it has always been. It is only through the willingness to give everything that Americans have the ability to hold onto the patriotic pride that is so important.
This Gold Star Spouses Day, and every day, take the time to remember these families that have given so much. Never take for granted the freedoms America has been given and fought for. Keep these sacrifices in mind each day, and be grateful for the men and women who are so willing to pay that ultimate price for their country. Whether you take to social media or see one at your local military installation, thank a Gold Star Spouse today.
When Colorado voters extended a partial property tax relief to totally disabled veterans and their survivors back in 2006, somehow no provision was made for survivors of troops who die on active duty.
To do so requires amending Article X Section 3.5 of the state constitution. We need to begin "baby steps" in 2021 for a decision by the voters in either 2022 or 2023.
(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.
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.