The Iowa legislature has moved a measure forward that could lead to a property tax hike in Sioux City.
A Republican-led panel in the Iowa House approved a bill to reduce the so-called “backfill” of money that goes annually to cities, counties and school districts.
The payments were part of a 2013 law that cut property taxes in Iowa.
It replaces reduced commercial and industrial property valuation.
Representative Pat Grassley, a New Hartford Republican who chairs a key budget committee, says the state can’t afford the payments, which are capped at $152 million annually.
A similar bill has been introduced in the Senate.
Opponents say many local governments would raise property taxes and reduce services, and that lawmakers would break a promise they made upon approving the measure.
Senate President Charles Schneider, a West Des Moines Republican, says the payments weren’t supposed to last indefinitely.