Navy was a little different in the 60's.
No requirement for state tax withholding as I recall. I was not aware of the Colorado requirement to file state tax forms, and was at an age that my thoughts were on other things.
You would just leave your pay on the books and draw down whatever you needed for runs to the store or to go on liberty.
When I was separated from active duty, I had enough on the books to buy a used VW Squareback, tour the country for 2 months, and to pay my first year at CU.
I was pretty frugal and kept all of the extra pay for hazardous duty, etc.
Just was not in my wheelhouse.