Times Staff Report

MERRILLVILLE | The Town Council on Wednesday proposed a resolution asking Gov. Mitch Daniels to convene a special session to address potential problems with a 1 percent income tax in Lake County.

Council members discussed the possible local-option income tax during a workshop and said the distribution system wouldn't benefit the town.

The council is likely to vote on the resolution next week during a regular meeting.

The Lake County Council has been forced by state officials to consider the income tax. The Indiana General Assembly passed legislation last spring that requires the council to either pass an income tax by Aug. 1 that would offset property tax increases or face losing $15 million in tax revenues next year.

Municipalities including Munster, Griffith, Highland, Crown Point and Schererville have adopted resolutions opposing a county income tax.