INDIANAPOLIS -- New or increased restaurant taxes would be used to help finance a new Indianapolis Colts stadium in a plan announced by Gov. Mitch Daniels on Thursday afternoon.

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Under the plan -- which also would help finance an expansion of the Indiana Convention Center -- the seven counties surrounding Indianapolis would be asked to pass a 1 percent restaurant tax. A portion of that revenue would go to the two projects, Daniels told reporters.

The plan also would allow Marion County, which contains Indianapolis, to boost its food and beverage tax from 1 percent to 2 percent. That new money also would support the stadium and convention center projects.

Daniels said the restaurant tax increase in all eight counties would raise $21 million a year for the projects.

Daniels said a 1 percent restaurant tax wouldn't bring much revenue from the seven surrounding counties. But he said it would enable Marion County to increase its tax without putting its restaurants at a 2 percent disadvantage with restaurants across the county border.

"The differential would stay the same," Daniels said. "There'd be no greater competitive distance than there is today."

Daniels said he believes leaders of the seven counties surrounding Marion County are agreeable to enacting the tax. Still, the plan wouldn't be scuttled if one or two counties don't, Daniels said.

"I'm just very encouraged that we have ... a combination that can win majority support here in the General Assembly," he said.

Several other plans to finance the stadium -- introduced by Indianapolis Mayor Bart Peterson or state legislators -- have died during this year's legislative session. Thursday's plan is the first to be announced by Daniels.

Indianapolis leaders are seeking a new stadium and a convention center expansion, and they say the city risks losing both the Colts and valuable conventions if something isn't done this year.

City leaders hope to expand the Indiana Convention Center into the spot where the RCA Dome, the Colts' current home, now sits.

Daniels said other parts of his plan still need finalizing. He said tax increases that have been discussed previously -- like those involving hotels and auto rentals -- are still possibilities.

Indianapolis Deputy Mayor Steve Campbell said it was too early for him to comment on Daniels' plan.

"The mayor and the governor are having direct discussions about this matter," Campbell said.

No immediate response to the plan was made by Sen. Luke Kenley, R-Noblesville and chairman of the Senate's tax policy committee. He said earlier that there was no support for a regional tax in the counties bordering Marion County.

Earlier Thursday, a researcher discussed a survey of Indiana residents, most of whom responded that they would be willing to pay for a new stadium. (Story | Executive Summary -- PDF File)