Two bills to provide tax relief for veterans sponsored by Colorado Springs Republicans were killed in committee on Thursday – the day before the state legislature celebrated Military and Veterans Appreciation Day. 

Senate Bill 106, sponsored by Sen. Bob Gardner and Rep. Mary Bradfield, would have made permanent the military retirement benefits tax deduction, which is set to expire this year. Senate Bill 107, sponsored by Sen. Larry Liston, would have expanded the property tax exemption for seniors and disabled veterans. 

Both of the bills were rejected in the Senate State, Veterans and Military Affairs Committee along party lines, with all Republicans voting in support of the bills and all Democrats voting against them. 

Republicans disavowed the Democratic opposition to the bills, accusing them of partisanship, while Democrats argued their opposition was due to improper processes. 

“My Democrat colleagues’ actions have continued to demonstrate they have little intention of addressing the rising cost of property taxes in this state,” Liston said. “Once again our colleagues across the aisle opted to play party politics instead of delivering something meaningful for our state’s most vulnerable.” 

Liston’s bill, SB 107, would have increased the maximum value impacted by the homestead property tax exemption. The exemption would go from deducting 50% of the first $200,000 of a home’s value, up to $300,000 immediately and, beginning in 2028, up to $500,000. 

The bill would have also loosened the requirement that seniors and disabled veterans live in the same home for at least 10 years to qualify – allowing those who downsize for medically necessary reasons to continue claiming the tax credit. 

Gov. Jared Polis called for this change himself in this year’s State of the State address. 

“We should also make the senior homestead tax exemption portable,” Polis said. “Our seniors should be able to downsize without having to pay higher property taxes, freeing up their larger old homes for younger, growing families.”

Despite backing from the governor, Democrats in the committee said they couldn’t support the bill because it is a longstanding practice and precedent that revenue raising policies must begin in the House, not the Senate. 

“My ‘no’ vote today is not based on not supporting seniors or elders in our community, it’s not based on not supporting veterans in our community, it is truly a function of process within this building,” said Sen. Julie Gonzales, D-Denver. “I welcome you, Sen. Liston, to bring back this effort and start it in the House so we can properly consider it.” 

During the committee, Liston said he “accepts full responsibility” if he started the bill in the wrong chamber, but he later criticized his Democratic colleagues for voting the bill down. 

“Due to inflation, rising costs of homeownership and increased property taxes, the senior and disabled veterans tax exemption in place is almost useless to these groups,” Liston said. “Seniors and disabled veterans are being taxed out of their homes. … There really is no such thing as a $200,000 home anymore.”

SB 106 was rejected for similar procedural reasons. The bill would have indefinitely extended the military retirement benefits deduction for taxpayers under age 55, which is scheduled to expire after 2023. 

Democratic opponents said they were rejecting the bill in favor of passing House Bill 1084 instead. The bill, also sponsored by Bradfield and Gardner, would extend the tax benefit for five years, rather than indefinitely. HB 1084 cleared its first committee vote last week. 

The Colorado Springs Chamber and Economic Development Corporation supported the indefinite version of bill, saying it would incentivize military retirees to remain in Colorado or move to Colorado, and align Colorado with states that receive much more funding from the Department of Defense – in addition to showing appreciation for veterans. 

Gardner said he will continue to fight for the passage of HB 1084, though it is “not as expansive” as the bill he had hoped to pass. 

“I’m disappointed to see this bill killed in committee,” Gardner said. “This bill recognizes the sacrifices made by our veterans, and ensures that they receive the benefits they deserve well into the future.” 

Ironically, the bills’ failures came on the eve of the legislature’s recognition of Military and Veterans Appreciation Day on Friday. During which, lawmakers spent more than three hours giving speeches and passing resolutions to honor military service.