It is just what local officials have been concerned about.
Republicans on a senate committee have advanced a bill to phase out 150-million dollars in annual state payments to cities, counties and school districts. The payments were promised in 2013 to make up for the cut in commercial property taxes that state lawmakers ordered. Senator Charles Schneider, a Republican from West Des Moines, says “no one realistically expected” the state to keep making these payments.
The phase out would begin in July of 2019. Senator Joe Bolkcom, a Democrat from Iowa City, says many cities and counties will be forced to raise taxes on homeowners and farmers to make up for the declining state payments.
The proposal is included in a budget bill and Republicans expect to approve the bill sometime this weekend.