Gubernatorial candidate Mike Pence says his plan would save taxpayers in Indiana more than $200 each year.
The state announced recently that it had not distributed more than $205 million in Local Option Income Tax funds.
Payroll withholdings were close to last year's levels and individual income tax revenues were up just over six percent.
Indiana‘s latest economic forecast is less than three weeks old, and tax collections are already falling short of projections.
Julie Thomas is taking the helm as the next president of the Monroe County Council.
Officials from the Association of Indiana Counties were careful to say putting property tax caps in the state constitution would have varying effects.
The council voted to raise the tax to one dollar and four cents for each 100 dollars of taxable income. The current rate is one dollar for every 100 dollars.