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State ‘backfill’ for local property taxes phased out by Iowa Senate bill

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Des Moines Register: The Iowa Senate Appropriations Committee advanced a bill Thursday to gradually eliminate state payments to local governments that lawmakers had promised when they approved sweeping commercial property tax cuts five years ago. Democrats who oppose Senate 2081 warn the plan will result in local property tax hikes for Iowans and possible cuts in critical government services, such as fire and police departments. The state currently pays $152.1 million annually to cities, counties and school districts for so-called “backfill” payments to offset local property tax cuts.