2023 General Assembly Final Action Summary

To read the full bills go to: https://leg.colorado.gov  Click on “Bills”.

General Assembly Update as of January 16, 124 measures introduced; House measures: 59 bills, 0 memorials; 12 resolutions; Senate measures: 49 bills, 0 memorials, 5 resolutions.

Measures introduced, considered and Postponed Indefinitely are in gray with strike through.

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Bills Directly Impacting Veterans/Military

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HB23-1045

Employee Leave for Colorado National Guard Service

Concerning leave from employment for state military service.

LAST ACTION: 01/9/2023 | Introduced in House - Assigned to State, Civic, Military, & Veterans Affairs

NEXT ACTION:  State, Civic, Military, & Veterans Affairs – Thursday, Jan 26 1:30 pm | LSB A

FISCAL NOTE:

SPONSORS: Rep. G. Evans

SUBJECT:  Military & Veterans                                               UVC Position:

                                                                                                Position:

Date:

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HB23-1052

Mod Prop Tax Exemption for Veterans with Disab

Concerning a requirement that a veteran who has individual employability status be treated equivalently to a veteran who has one hundred percent permanent disability when determining eligibility for any state veterans benefit, and, in connection therewith, expanding eligibility for the property tax exemption for veterans with a disability to include a veteran who does not have a service-connected disability rated as a one hundred percent permanent disability but does have individual unemployability status.

LAST ACTION: 01/9/2023 | Introduced in House - Assigned to State, Civic, Military, & Veterans Affairs

NEXT ACTION:  State, Civic, Military, & Veterans Affairs - Monday January 23 1:30 pm | LSB A

FISCAL NOTE: Not available at this time.

SPONSORS: Rep. B. Marshall | Sen. R. Fields

SUBJECT:  Military & Veterans                                               UVC Position:

                                                                                                Position: SUPPORT

HB23-1053

Veterans' Cemetery Department of Public Safety Gifts Grants Donations

Concerning the authority to accept and expend gifts, grants, and donations, and, in connection therewith, authorizing the division of veterans affairs to expend gifts, grants, and donations in support of the western slope military veterans' cemetery, authorizing the department of public safety to accept and expend gifts, grants, and donations in support of its purposes, and creating the department of public safety gifts, grants, and donations fund.

LAST ACTION: 01/9/2023 | Introduced In House - Assigned to State, Civic, Military, & Veterans Affairs

NEXT ACTION:  State, Civic, Military, & Veterans Affairs – Thursday, Jan 26 1:30 pm | LSB A

FISCAL NOTE:

SPONSORS: Rep. A. Hartsook | Rep. D. Ortiz | Sen. R. Zenzinger | Sen. J. Rich

SUBJECT: Military & Veterans                                                UVC Position:

                                                                                                Position: MONITOR

Date: EXCOM – January 11, 2023

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SB23-036

Veterans With Disab Prop Tax Exemption Reqmnts

Concerning a change to the application process for the property tax exemption for veterans with a disability.

LAST ACTION: 01/10/2023 | Introduced in Senate - Assigned to State, Veterans, & Military Affairs

NEXT ACTION: 

FISCAL NOTE:

SPONSORS: Sen. B. Pelton | Sen. L. Cutter | Rep. R. Armagost | Rep. D. Ortiz

SUBJECT: Fiscal Policy & Taxes                                              UVC Position:

                                                                                                Position:

Date: EXCOM –

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Introduced Bills that May Impact Veterans, Military but are not Directly Related to UVC Goals

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HCR23-1002

Modification to Property Tax Exemption for Veterans with A Disability

Submitting to the registered electors of the state of Colorado an amendment to the Colorado constitution concerning the expansion of eligibility for the property tax exemption for veterans with a disability to include a veteran who does not have a service-connected disability rated as a one hundred percent permanent disability but does have individual unemployability status.

LAST ACTION: 01/9/2023 | Introduced in House - Assigned to State, Civic, Military, & Veterans Affairs

NEXT ACTION:  State, Civic, Military, & Veterans Affairs - Monday January 23 1:30 pm | LSB A

FISCAL NOTE: Not available at this time.  See HB23-1052      UVC Position:

                                                                                                Position: SUPPORT

Date: EXCOM – Jan 11, 2023

SPONSORS: Rep. B. Marshall | Sen. R. Fields

SUBJECT:  Military

HOUSE BILL 18-1060

BY REPRESENTATIVE(S) Danielson and Landgraf, Becker J., Lundeen, McKean, Rankin, Reyher, Thurlow, Williams D., Wilson, Wist, Arndt, Bridges, Buckner, Carver, Catlin, Coleman, Covarrubias, Esgar, Exum, Foote, Garnett, Ginal, Gray, Herod, Hooton, Jackson, Kennedy, Kraft-Tharp, Lee, Liston, Lontine, McLachlan, Melton, Michaelson Jenet, Pabon, Pettersen, Roberts, Rosenthal, Salazar, Sias, Singer, Valdez, Winkler, Winter, Young, Duran, Hamner, Lawrence, Leonard, Ransom, Van Winkle, Weissman, Willett; also SENATOR(S) Crowder and Williams A., Cooke, Coram, Gardner, Hill, Kefalas, Lundberg, Martinez Humenik, Moreno, Priola, Sonnenberg, Tate, Todd, Grantham.

CONCERNING A STATE INCOME TAX DEDUCTION FOR MILITARY RETIREMENT BENEFITS FOR AN INDIVIDUAL WHO IS UNDER FIFTY-FIVE YEARS OF AGE.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. The general assembly hereby finds and declares that the purpose of the tax deduction created by this act is to honor the sacrifice and service of veterans and to create an incentive for more veterans to make their post-military homes in the state. Capital letters or bold & italic numbers indicate new material added to existing statutes; dashes through words indicate deletions from existing statutes and such material not part of act. SECTION 2. In Colorado Revised Statutes, 39-22-104, add (4)(y) as follows: 39-22-104. Income tax imposed on individuals, estates, and trusts - single rate - legislative declaration - definitions - repeal. (4) There shall be subtracted from federal taxable income: (y) (I) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2019, BUT PRIOR TO JANUARY 1, 2024, AN AMOUNT EQUAL TO A QUALIFIED INDIVIDUAL'S MILITARY RETIREMENT BENEFITS INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, BUT NOT TO EXCEED THE FOLLOWING AMOUNTS: (A) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2019, BUT PRIOR TO JANUARY 1, 2020; (B) SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2020, BUT PRIOR TO JANUARY 1, 2021; (C) TEN THOUSAND DOLLARS FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2021, BUT BEFORE JANUARY 1, 2022; OR (D) FIFTEEN THOUSAND DOLLARS FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2022, BUT BEFORE JANUARY 1, 2024. (II) As USED IN THIS SUBSECTION (4)(y): (A) "MILITARY RETIREMENT BENEFITS" MEANS ANY RETIREMENT BENEFITS RECEIVED AS A RESULT OF THE INDIVIDUAL'S SERVICE IN THE ARMED FORCES OF THE UNITED STATES. (B) "QUALIFIED INDIVIDUAL" MEANS AN INDIVIDUAL WHO IS UNDER FIFTY-FIVE YEARS OF AGE AT THE CLOSE OF THE TAXABLE YEAR. 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 PAGE 2-HOUSE BILL 18-1060 Kevin J. Grantham PRESIDENT OF THE SENATE APPROVED '14,otA/ John W. Hic GOVERN enlooper OF THE S E OF COLORADO 8, 2018, if adjournment sine die is on May 9, 2018); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2018 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

HB18-1060 provides for a state income tax exclusion of up to $20,000 in military retirement pay for military retirees up to age 55.  (Reduced to $15,000 during final negotiations.)

Reasons to Support HB18-1060:

Economic Growth:  Colorado’s economy, tax base, and local governments benefit when newly retired military and their families choose Colorado as their home. 

• Military members are eligible for retirement after 20 years of service.  Average age of military personnel retiring from active duty is 42.7 years. When they retire, younger retirees start second careers and make a conscious choice of what state to call home – and state taxes play a big role. 
• Currently, a state income tax exemption exists on retirement income for taxpayers (military and civilian) 55 and older; our younger-than-55 military retirees are not allowed this same exemption.
• Without this exemption, Colorado is losing military retirees and taxes to other states that either do not have state income tax or exempt 100% of military retirement pay from state income tax.  (See reverse.)
• If HB18-1060 becomes law, there will be an estimated return on investment (ROI) exceeding 500% for each new, younger military retiree choosing Colorado as home.  (See reverse.)
• Exemption adds more than $10M annually to military retiree family disposable income to spend in local communities creating additional civilian jobs and other economic benefits.

Workforce Development:  Colorado employers need and value retired military skills.

• Military retirees have the skills Colorado employers need and want. Military retirees are highly educated, technically and globally savvy, and seek to turn their military expertise into civilian careers.
• Military technical/professional expertise covers a wide spectrum of high value professions, including but not limited to:  IT; data analysis; finance/accounting; supply chain management/logistics; medical/dental; energy technology; social work; legal services; vehicle/aircraft maintenance; law enforcement; HR; construction; education/training; public administration; strategic planning.
• Retired military skills valued by employers:  leadership; communication; management; team building; planning; flexibility; integrity; problem solving; time management.

Honoring Military Service:  Colorado values contributions of retired military and families.

• Retired pay exemption is tangible evidence of Colorado’s goal to honor military service and sacrifice.
• 70% of retired military younger than 55 currently living in Colorado are from the enlisted ranks.  High cost of Colorado housing is a deterrent, mitigated by the proposed retired military pay tax exemption. 
• Retired military families have their own DoD health insurance (TRICARE) that is ACA compliant.
• Military retired pay is “received” in Colorado but “earned” in service throughout the U.S. and world.

Colorado Retired Military Trends

Source:  Department of Defense Office of the Actuary as of September 15, 2017 by Special Request. Data does not include Coast Guard numbers.

• Represents an estimated annual state and local tax revenue loss over $4 million! (Second   career/investment income tax, property tax, sales tax, auto tax, fees)

States that Moved from Partial Exemption to Full Exemption

The following states no longer tax military retirement pay:

   Alabama                          Iowa                          Michigan                   Ohio

   Arkansas[1] (effective 2018)     Kansas                       Minnesota                 Pennsylvania

   Connecticut                     Louisiana                   Mississippi                West Virginia (effective 2018)

   Hawaii                             Maine                         New Jersey               Wisconsin

   Illinois                             Massachusetts          New York      

Additionally, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not have a personal income tax.  Thus, there are 28 States that do not tax retired military pay.

Net Tax Benefit Calculations

Proposed Colorado military retirement pay exemption x state income tax rate:

$20,000 X .0463 = $926

2016 Combined Colorado Median Household Income, Property and Sales Taxes:

• Median household income:  $65,685 x .0463 state income tax = $3,041
• Median home value/median home property tax:  $341,600/ $1,437
• Annual tax on $32K car = $412           x2 cars = $824
• Approximate median household annual purchases x median Colorado sales tax

$13,500 x .075 = $1,012

Combined Colorado median household tax estimate:  $6,233

HB18-1060 is UVC’s No. 1 Legislative Priority for 2018 General Assembly

• The United Veterans Committee of Colorado (UVC), a non-profit coalition of 50 chartered and federally recognized veteran organizations, advocates on behalf of Colorado’s 450,000 veterans and families.

Additional information:

As of September 2017, there are 49,636 retired military of all ranks and ages living in Colorado and receiving non-disability retirement pay.  This bill impacts an estimated 11,000 (22%) of the 49,636.

Total pre-tax military retirement pay received annually in Colorado: $1.5 billion

The average (all ranks, all ages) annual retirement pay received by Colorado retired military is $31,100.00

In 2018, this $31,100 will be subject to a 12% federal tax bracket meaning approximately $180,000,000 will go back to the federal government as income tax.

 Average after-federal-income-tax Colorado military retirement pay in 2018:  $27,400.  Average Colorado income tax on this amount is $1,250.  With the $20K exemption, the estimated Colorado income tax on average military retirement pay (for those under 55) will be reduced to $324 at full phase-in.  ($15K exemption will reduce tax to $555.)

$555 X 11,000 (under 55 retired military population) = about $6.1M.  Colorado revenue will still receive about $6.1M in annual revenue from military retirement pay going to recipients under age 55.

There are military retirees living in all Colorado counties.

Enhance Colorado’s Economy and Workforce

Honor Military Service

Sponsors:  Rep. M. Bradfield

HB21-1113 provides an additional 10-years to a state income tax exclusion of up to $15,000 in military retirement pay for military retirees up to age 55 and increases the exclusion to $20,000.

Reasons to Support HB21-1113:

Economic Growth:  Colorado’s economy, tax base, and local governments benefit when newly retired military and their families choose Colorado as their home. 

• Military members are eligible for retirement after 20 years of service.  Average age of military personnel retiring from active duty is 42.7 years. When they retire, younger retirees start second careers and make a conscious choice of what state to call home – and state taxes play a big role. 
• Without this exemption, Colorado is losing military retirees and taxes to other states that either do not have state income tax or exempt 100% of military retirement pay from state income tax. 
• There will be an estimated return on investment (ROI) exceeding 500% for each new, younger military retiree choosing Colorado as home. 

Workforce Development:  Colorado employers need and value retired military skills.

• Military retirees have the skills Colorado employers need and want. Military retirees are highly educated, technically and globally savvy, and seek to turn their military expertise into civilian careers.
• Military technical/professional expertise covers a wide spectrum of high value professions, including but not limited to:  IT; data analysis; finance/accounting; supply chain management/logistics; medical/dental; energy technology; social work; legal services; vehicle/aircraft maintenance; law enforcement; HR; construction; education/training; public administration; strategic planning.
• Retired military skills valued by employers:  leadership; communication; management; team building; planning; flexibility; integrity; problem solving; time management.

Honoring Military Service:  Colorado values contributions of retired military and families.

• Retired pay exemption is tangible evidence of Colorado’s goal to honor military service and sacrifice.
• 70% of retired military younger than 55 currently living in Colorado are from the enlisted ranks.  High cost of Colorado housing is a deterrent, mitigated by the retired military pay tax exemption. 
• Retired military families have their own DoD health insurance (TRICARE) that is ACA compliant.

Colorado vs. Other States:  Majority of states exempt 100% military retirement pay from state taxes.

• 9 states do not tax personal income.
• 21 states tax personal income but exempt 100% of military retirement pay.
• 16 States have “Special Provisions” or other consideration for military retirement pay.
• 4 states + D.C. tax 100% of military retirement pay.