Amendment G would extend Colorado's homestead property tax exemption to more veterans

DENVER — Colorado’s Amendment G asks voters in the November election whether to extend a homestead property tax exemption to more military veterans with disabilities.

Veterans of the U.S. armed services who have a disability that makes them unemployable would qualify to claim the exemption on their property taxes if voters approve the amendment. The Colorado General Assembly referred the question to the ballot this year.

Because it would amend the state constitution, the measure needs 55% support to pass.

What would Amendment G do if passed?

The amendment would expand eligibility for the state’s homestead exemption for property taxes to include veterans whose service-related disabilities are rated as making them unemployable. The exemption currently is available only for veterans with service-connected disabilities that the federal government rates as 100% permanent and total.

In order to qualify for the rating under the expanded eligibility, a veteran would have to be unable to work a steady job because of a service-related disability. That typically involves the veteran having one disability that rates them as 60% disabled or more, or having multiple disabilities that combine for a 70% disability rating or higher, as determined by the U.S. Department of Veterans Affairs.

State analysts estimate 3,700 veterans in Colorado would qualify for the new exemption.

What is the homestead exemption?

The exemption excludes 50% of a home’s value — up to $100,000 — from taxation. The exemption equals an average savings of $590 per year for homes valued at $250,000 or more, according to the state’s Blue Book voter guide.

The exemption is available to Coloradans who are 65 or older and have lived in their homes for 10 years or more; the veterans with service-connected disabilities rated 100% permanent and total; and surviving spouses of U.S. military service members who died in the line of duty or who died as a result of a service-related injury or disease.

How much would Amendment G cost?

Expanding the homestead exemption would cost the state about $1.8 million per year to reimburse local governments for lost property tax revenue, state analysts project.

What do supporters say?

Supporters say veterans who can’t hold a steady job need property tax relief as much as those who already qualify for the exemption.

What do opponents say?

The unemployable disability rating isn’t necessarily permanent, so expanding the exemption could make property taxes more complicated, harder to administer fairly and reliant on determinations by the U.S. Department of Veterans Affairs, according to the Blue Book.

_______