The Iowa legislature’s tax plan passed this session will end the backfill, which was created in 2013 requiring the state to refund local governments for commercial property tax cuts.

The backfill is said to represent $152.1 million annually statewide, and while Washington City Administrator Brent Hinson says it won’t be a devastating loss of funds for the city, it should amount to approximately a $100,000 cut, “It is just kind of a continuing pattern of disconcerting activity at the statehouse in my opinion. I think that rural legislators don’t really realize that they’re strangling their local communities and their local schools, etc. with the decisions they make. I think they go into these discussions kind of with how rich the Des Moines communities are in mind and that is not representative of the vast majority of the state or the communities they serve.”

The backfill payments will be phased out over the course of four to seven years, depending on the growth of the tax base. Hinson says the city will have to plan for this loss in the next budget planning season. He adds that the city has been extremely responsible, keeping the same property tax rate for the last 10 years. Hinson predicts this loss will rather have an impact on city service planning, as they’d like to add one or two more police officers, or additional staff for water main replacement. The state’s tax plan features many changes including a shift of mental health funding from regional property taxes to a state appropriation, a phasing out of Iowa’s inheritance tax by 2025, and an increased tax credit from $100 to $250 for volunteer firefighters, emergency medical responders, and reserve peace officers.