INDIANAPOLIS | Gov. Mitch Daniels said Monday morning that he didn't know property tax legislation approved late Sunday would force a 1-percent income tax on Lake County, but he plans to sign the bill into law.

"If there's a compulsory provision in the package that went through last night, I haven't seen it yet," Daniels said Monday. "It's always been a mystery to me that with enormously high -- inordinately high -- property taxes, Lake County is one of those counties that's never used the (income tax) authority that's been sitting there right along, and they really should, voluntarily."

Tired of waiting for that to happen, state lawmakers penned legislation that would freeze property tax levies for city, county and township budgets at current levels if Lake County doesn't pass a 1-percent income tax and dedicate the full $76 million in proceeds to tax relief for homeowners. School budgets still would be allowed to grow.

The architects of the compulsory tax plan say they're willing to listen if Lake County officials can come up with a better suggestion before the General Assembly goes back to work in January.

"If the Lake County people want to come talk to us about that, our doors will be open," said Senate Tax Chairman Luke Kenley, R-Noblesville. "Rep. (Bob) Kuzman and I will take responsibility for that (income tax) appearing in the bill. The reason why we put that in there is we're very concerned that Lake County ... is not taking advantage of its opportunities there. And secondly, it's not serving its citizens well by developing Lake County in ways that they can benefit from new jobs and good schools and all the things that come with prosperity."

Kuzman, a Crown Point Democrat and vice chairman of the powerful Ways & Means Committee, said, "Both Sen. Kenley and I are committed to do what we can to stop property tax increases. And I think this is one way we can look at it."

Lawmakers say a county income tax dedicated to converting Methodist Hospitals Northlake in Gary to a county hospital is one option that might help persuade them to rework the income-tax mandate.