New law removes state income tax for Coloradans in military

2015-06-09T10:10:04-04:00

This is great news for Colorado Service members. My whole career while I was in my home state had this exemption also. It made a big difference as an E-4 with a family and later on it was always nice to not have to file state taxes every year. Share with you Soldiers, Sailors, Marines and Airmen
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Note: Full article added by RP Staff.

DENVER - One bill Gov. John Hickenlooper signed into law this year is intended to be a homecoming of sorts for Colorado's active-duty military.

Active-duty military members are provided with a list of the 30 states that either don't have income tax or exempt military members from paying it and asked where they'd like to declare their residency.

"There isn't a whole lot of head scratching going on," said Rep. Jon Keyser, R-Morrison.

Colorado residents who join the military are picking Texas or Florida as their states of residence to save thousands of dollars in income tax. Even those stationed at Fort Carson who are longtime Colorado natives have declared residency in other states. Just look at all of the out-of-state license plates on base, he said.

House Bill 1181, called the "Honoring Our Military Exemption" or the HOME bill, allows servicemembers who have their official "home of record" as Colorado to maintain Colorado residency without having to pay state income tax.

"This bill doesn't cost the taxpayers anything," Keyser said, noting that it's unlikely active-duty members are paying Colorado income tax .

And, he said it could increase revenue by having those who reclaim Colorado residency register their cars in state.

Keyser, a graduate of the Air Force Academy and a major in the Air Force Reserves, said the challenge now that the bill has become law is making sure Colorado's recruits know when they are provided with a choice of which state to call home that they won't have to pay income taxes if they pick the Centennial State.

The bill passed 56-9 in the House and 27-8 in the Senate.

Keyser said the goal is to someday have the exemption apply to any active-duty military members who want to call Colorado home, but for now it is limited to those who have established residency in the state when they enlist.

http://gazette.com/new-law-removes-state-income-tax-for-coloradans-in-military/article/1553361

Response by SSgt Private RallyPoint Member made Jun 9 at 2015 10:26 AM

2015-06-09T10:26:38-04:00

If I recall correctly, I did not have to pay State income tax in MO while I was stationed in Minot. This is a good thing for many AD members as they are not making, nor spending money in their home states while they are active.

Response by TSgt Joshua Copeland made Jun 9 at 2015 11:21 AM

2015-06-09T11:21:35-04:00

I am curious of what is really in it for Colorado. They say car registrations but I know tons of folks that register cars in states they don't have residency in. I am one of them I have in fact never registered a car in the state of my residence (Florida). It has always been the state I purchased the car as a matter of convenience (PA, NJ, OH, LA).

Response by PFC Private RallyPoint Member made Jun 9 at 2015 5:13 PM

2015-06-09T17:13:47-04:00

Tax revenue has to come from somewhere. In Texas it is the oil. In Colorado, it comes from the new marijuana sales. Both cases are a win for the military.

Response by PO1 John Miller made Jun 9 at 2015 6:01 PM

2015-06-09T18:01:58-04:00

Michigan had this law as well. It was nice only having to file a federal tax return all those years.

Response by Capt Richard I P. made Jun 9 at 2015 6:06 PM

2015-06-09T18:06:17-04:00

I know the state congressman and AF Reserve Maj who sponsored (and I think authored) this bill. Props to Jon Keyser. I'll see if I can get him on RP.

Response by LTC Paul Labrador made Jun 21 at 2015 6:49 PM

2015-06-21T18:49:55-04:00

Maybe Colorado needs to look at removing income tax for ALL residents....

Response by SSgt Boyd Herrst made May 28 at 2017 6:19 PM

2017-05-28T18:19:53-04:00

Troops with Michigan Residence don't pay state tax when stationed outside of state.
A friend of mine is a recruiter whose from Michigan and stationed in Toledo and lives there and travels back up to Michiigan(35 mi.) to visit mom and family when he had time ..

Response by SSgt Boyd Herrst made May 28 at 2017 6:46 PM

2017-05-28T18:46:13-04:00

I was stationed at Travis in Ca. after returning from O'seas. I brought my auto from Mi. I was told to put state of Ca. Tags.. and had to have a Ca. Inspection.
I had just bought the car and it met Ca. Inspection stds already I showed Security Police my purchase papers so they gave me my base pass sticker w/o the Ca. Insp. Sticker.. I had never put Ca. Tags on my car either. I followed all the traffic laws and never got pulled over. Part way about 6 mo. I got a letter from Ca. State tax dept. to pay state taxes. So I got a letter from base assignments saying I was there as a matter of ordered duty not request which was true... I had asked for Alaska.
I had that duty request as proof and sent all that to Ca. DMV. With a letter from JAG. I was getting tired of the run-around by Ca. DMV. I finally went to the JAG Divional General who got a "cease and desist" letter from Wash. D.C. finally the harrasment quit. I still wanted out of
CA. and got orders and went to North Dakota.. Good riddance Ca.! They still questioned my duty stay in Ca. They still think I enjoyed my stay... not even !...