CHICAGO -- The Iowa Department of Revenue and Finance will appeal a district court decision that could cost as much as $50 million in retroactive state income tax refunds to federal government pensioners, a state official said yesterday.

Earlier this month, Linn County District Court Judge Lynne Brady ordered the revenue department to refund state income tax payments made by Arlo Hagge, a retired federal employee in Cedar Rapids. The decision covered payments made by Mr. Hagge from 1985 to 1989.

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