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A special state commission rejected the so-called "Tax-payers' Bill of Rights" regarding property taxes on Monday.
The commission said such a deal could put local governments in a bind.
The measure would have gone before voters in November.
The plan would have kept property taxes from going up faster than population growth or the price of goods.
Meanwhile, the commission is working on a different plan that could still make the ballot.
That plan could slash property tax bills by 25 percent in return for raising the sales tax by a penny.
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