Indiana lawmakers are proposing a plan that could eliminate property taxes on owner-occupied homes by using local income tax revenue to provide homeowners with a 100% property tax credit.

Senator Ryan Mishler says the credit could be phased in over five years, with most counties already having enough income tax capacity to cover the cost.

Lawmakers say the proposal would avoid shifting the tax burden to businesses and other property owners, but local governments would have to decide whether to raise income taxes to fund the credit.