An angular offset sensing device includes an optical encoder having a light generating element and a light sensor. An armature includes a reflective surface having a generally semicircular shape and a spectrum of color disposed thereon varying from a first end of the surface to a second end of the surface. A housing encloses both the optical encoder and the armature and rotationally supports the armature. An electrical voltage is generated when light from the light generating element is reflected back to the sensor from the reflective surface. The voltage is proportional to a wavelength of the reflected light and is indicative of an angular rotation of the armature relative to the optical encoder. The voltage is corrected for linearity and used for example to signal a vehicle transfer case shift.