Home Local News IOWA LAWMAKERS MOVE TO ELIMINATE PROPERTY TAX BACKFILL

IOWA LAWMAKERS MOVE TO ELIMINATE PROPERTY TAX BACKFILL

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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.

AP