INDIANAPOLIS | Tax activists, upset homeowners and lobbyists for every level of local government took turns Tuesday poking holes in the governor's plan to reduce and restructure property taxes.

Much of the four hours of testimony before the Senate Tax and Fiscal Policy Committee centered on the tough budget choices the Republican governor's plan would foist onto cities, counties, schools and other local government units.

State Sen. Luke Kenley, R-Noblesville, in turn complained that fewer than a dozen counties took advantage of the local income tax options legislators extended last year.

"I'm concerned by the lack of action that we're getting," Kenley said. "They want to be in charge of themselves, but they don't want to get out in front of the parade."

The Legislature last year gave Lake County specific marching orders to enact a 1 percent income tax dedicated to property tax relief. But county officials instead chose to endure budget freezes that will deny local government $17 million this year.

Local spending controls are a key component of Gov. Mitch Daniels' tax relief plan. And his push to cap tax bills -- at 1 percent of assessed value for homeowners, 2 percent for landlords and 3 percent for businesses -- could force local government in Lake County to cut spending by $252 million next year.

Wendy Robinson, president of the Indiana Urban Schools Association, told the committee the caps will force districts to shed staff, including teachers.

Others continued to call for the abolition of property taxes, a $6.2 billion proposition that would require steep increases in state income or sales taxes.