A DISABLED VETERAN AND MILITARY RETIREE LOOKS AT HB23-1084 -Continuation of Military Retirement Benefit Deduction in Colorado

This measure deserves the full support of the Colorado legislature and the voters. It certainly has mine!

HB23-1084 is important. It carries a small and reasonable cost that brings advantages to the state well beyond the investment. It should be approved this session.

DECLARATION: Neither this bill nor HB23-1002 will affect me as my retirements are already exempt from Colorado’s income tax. I am a VA-rated 100% disabled veteran and also a 26-year military retiree separated from the Air Force at a 100% medical disability, thus my state income tax is already exempt for other provisions of the law.

At first glance, I believed HB23-1002 for disabled veterans should be a priority over HB23-1084. Instead, I now urge approval of both measures because they are good for veterans and great for Colorado. This year both bills are firmly supported by the United Veterans of Colorado.

Since 2011 I’ve urged legislative action to help other totally disabled veterans and thus have long supported measures such as HB23-1002. Colorado’s constitution currently provides a partial property tax exemption to VA-rated 100% disabled vets but fails to address VA’s second category of disabled veterans who are totally disabled, those the VA rates as “totally disabled for individual unemployability (TDIU.)

HB23-1052 addresses that oversight and supports nearly 3,000 of Colorado’s most seriously and totally disabled veterans whose injuries or illnesses prevent any employment. I expected to strongly favor only this initiative because of the moral imperative of meeting the needs of these vets. 

I’ve changed my view. I see both measures as vital legislation for Colorado in 2023, particularly because HB23-1084 is an economic “no-brainer,” bringing much more to Colorado than it costs

Retired military who chose Colorado as their home following active duty do so for many reasons. Clearly, important among them is a favorable treatment of their military retirement income. Colorado currently exempts a modest portion of a military pension; HB23-1084 merely extends it to 2034. This measure pays for itself far beyond its modest cost,

In 2021 28 states exempted all of a military retirement from state income taxes, and that number rose to 32 in 2022. Eleven states, including Colorado, currently offer an exemption for at least some portion of a military retirement. Seven states and the District of Columbia have no military pension exemption. To our disadvantage, Colorado will join that short list in 2024 unless HB23-1084 is approved to continue our partial exemption.

Governments and legislators see the importance of being “veteran-friendly” but unfortunately Colorado only ranks a modest 27th among the states.

Being “military-friendly” recognizes a retiree’s long service to the state and nation and it makes great economic sense. Thanks in part to the current partial exemption provided military pensions in Colorado, our 50,000 retired military have brought their steady retirement income. Most brought their military experience, skills and knowledge to join our workforce or start their own businesses as second careers. Servicemembers already here have been encouraged to stay after leaving active service, and others selected our state as their new home, in part because of the current partial exemption for military pensions.

States value retired military members because they bolster the state economy by bringing retirement income and non-taxed VA benefits, like the GI Bill. Typically, their federal benefits leave them independent of state support services. According to a California study considering state taxation of military pensions, researchers determined there would be significantly more jobs, millions added to total personal income, billions added to gross state product and to business sales if military pensions were exempted.

Another recent study by the Towson University Regional Economic Studies Institute (RESI), found that “If (the state) does not exempt military retired pay from state income taxes … countless other service members and their families will opt to retire to military retiree-friendly states.”

The Towson study also stated that when military retirees reenter the workforce, their taxable income generates an economic impact in addition to that of their military pensions. Their second careers can last from 15 to 20 years. Military retiree household spending — groceries, rent, mortgage payments, automobile purchases and recreation spending, to name a few items — also benefits the economy. As average to above-average wage earners, these are the folks Colorado wants to attract and keep.

HB23-1084 is a golden opportunity to increase state revenues by passing legislation that would continue to partially exempt military retired pay from state income tax. This legislation would help stem a migration of skilled and experienced personnel who retire from the military and leave Colorado because of state income tax higher than other states.

Military vets are good neighbors who pay their bills, volunteer in the community and have an appreciable level of discretionary income. Most other states have learned this and realize that exempting military pensions from state income taxes means losing a little in revenue but building a stronger fiscal base by increasing the total number of state taxpayers. States that understand the economics of exempting military retired pay reap the benefits that come with creating an attractive fiscal landscape. 

We need to keep our “landscape” military-friendly with HB23-1084.

United Veterans Coalition of Colorado 2023 Legislative Goals

 2023 Colorado legislative goals:

1. HB23-1084    Continuation Of Military Retirement Benefit Deduction

2. HB23-1052    Mod Prop Tax Exemption for Veterans with Disability (TDIU veteran's property tax exemption)

VICTORY FOR GOLD STAR SPOUSES!

AMENDMENT E APPROVED BY 88% OF COLORADO VOTERS!

In a sweeping victory for the United Veterans of Colorado and Gold Star Spouses, voters approved amending the Colorado Constitution Article X Section 3.5 to extend the partial property tax exemption to Gold Star Spouses.

 Several years of efforts, of resolutions passed by the American Legion, leadership of the UVC and patience of the Gold Star spouses themselves, all finally came to the best possible resolution – not only passed as required with 55% of the voters approving, but by an overwhelming 88%.

Gold Star Spouse Property Tax Exemption WILL Be On November Ballet

The Colorado state constitutional amendment adding Gold Star Wives (Spouses) to the state's disabled veteran and senior property tax exemption WILL be on the November ballot, having been passed unanimously by both houses of the Colorado legislature. 

This reflects terrific leadership by the legislative committee of the United Veterans Coalition, which made it their Number One legislative objective for 2022.

Congratulations to all who worked on this initiative and now, let's get the vote out for November!

In 2013 I identified three flaws in the state's property tax exemption law: failure to include disabled military retirees, failure to include Gold Star Wives, and failure to include veterans considered totally disabled by the VA with a rating called "total disability for individual unemployability."

So far, the first two are resolved and now we can set our sights on our worthy TDIU veterans, denied important state property tax benefits for far too long.

GOLD STAR SPOUSES PROPERTY TAX EXEMPTION ADVANCES TO SENATE FLOOR

Yesterday the Colorado Senate Appropriations Committee voted unanimously its approval of the Gold Star Spouses property tax exemption bill. Several senators on the committee spoke to the importance of this bill.

Once approved by the Senate and signed by the governor, the bill goes to voters in each senatorial district as a referendum on amending the state constitution to include Gold Star Spouses for the partial property tax exemption. Presently, survivors of totally disabled vets already receiving the exemption continue the exemption. The original language of the property tax exemption unfortunately didn't address the situation of servicemembers who die on active duty.

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"

New Diagnosis - Parkinson's Disease

They might have figured out some of the problems I've been having...I got diagnosed with Parkinson's last week. The symptoms are there but don't seem to be advancing too fast, so at age 75 I can hope to "age out" of the worst of it.

Another blessing brought to us by Agent Orange! Parkinson's, Parkinsonism and Parkinsons-like symptoms are now considered Agent Orange presumptive illnesses, along with bladder cancer and all the old favorites!

My College Roommate Wins 100% Disability Claim - after VA lost his papers for half a century!

Yesterday my college roommate Paul heard from VA that his supplemental claim for disability has been approved. He's now backdated 100% to December 2020! Great news, following the first claim being approved earlier for hearing loss at 40%. My strategy helping him was to tie certain current problems to his hearing loss as secondary issues. VA has agreed, following an appeal that reversed their initial denial.

Now, he will get a better disability compensation, medical care for himself and family, some state benefits and, if and hen needed, nursing home or other such advanced care.

These are earned entitlements which he has been denied for the past half-century. Denied VA medical care, GI home loan, every state benefit withheld. There's no catch-up for what he's been refused.

Remember: this is a good outcome but it really is an immense VA failure! Paul first applied for VA disability benefits when he was released from active duty in 1969. He lived with his disability and forgot all about the VA claim which, decades later, was finally found in his Army dental records. The VA never found this critical document: It took his attorney Katrina Eagle a couple hours. Perhaps...VA didn't give a damn?

A veteran has a reasonable beef with the VA when they take half a century to resolve a claim, meanwhile denying all federal and state benefits. Paul has a beef, but right now he's simply glad things have gotten straightened out.

The VA tried. Dragged it out fifty years, and if only the process had taken a bit longer, until Paul had passed, VA could cancel his claim altogether because when the vet dies, so does the claim. Too bad, VA. At least you made it into your disgusting "Claim Ignored 50 Years Club."

Over half a century. But who's counting?

Helped my college roommate get huge VA retroactive disability check

$155,000. It will be in his bank on Monday," said his attorney K. E, when she called to give me the great news. My old college roommate has won a 52-year old VA claim he'd long-forgotten having submitting in 1969 when he left active duty. 

I got his initial VA claim approved earlier this year at 40% disability with an initial check for $7,000, paying what was due from November 2020 when I mailed it. However, I knew he needed professional help trying to get other serious disabilities related to what the VA decided is already service-connected.

I recommended the attorney I knew best, who also has her solo veteran-focused practice near my friend. Her expertise uncovered the fact that his initial claim had been submitted back in 1969, filed and lost somehow into his VA dental records and never adjudicated. She slapped the paperwork into the mail to catch up with this VA error, and today's great news comes as a blessing for my old friend.

What a happy day!

WHO SAID VA DOESN'T HAVE A SENSE OF HUMOR?? THAT'S SO NOT TRUE!

 I LEARNED TODAY FROM THE CHEYENNE VA CLAIMS OFFICE THAT I'D BEEN DECLARED  DEAD!

"Not so," I insisted and whipped out my ID cards. "Oh, bother," said the claims agent as she looked forward to an entire afternoon correcting VA's boo-boo. Here's how VA posted the changes: (Third line under STATUS of Your Claim)