INDIANAPOLIS -- A City-County Council committee on Monday voted to delay a decision on whether to recommend Mayor Bart Peterson's request to raise the county's income tax.

Part of the increase would be used to lower property taxes this year and next. The council's administration and finance committee decided to delay its decision to gather information on what steps the state might take to lower property tax bills, 6News' Renee Jameson reported.

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Capitol WatchBlog: Property Tax Crisis

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Peterson last month called for a raise of Marion County's income tax from 1 percent to 1.65 percent, which he said would yield an extra $90 million yearly, most of which would be put toward crime-fighting initiatives. Last week, Peterson said the first three months of revenue from the income tax increase would be used to lower property taxes.

Peterson also said he would refinance the county's debt to the state for child welfare and incarceration. He said the refinancing and income tax revenue would reduce property taxes $75 million over two years -- a temporary bandage to an issue that ultimately, he said, will require state intervention if homeowners are to see permanent relief.

If the income tax increase is approved by the full council, a person making $50,000 per year would see his or her monthly income tax payment rise from $41 to $68.

The committee is scheduled to meet again on Friday.

Taxpayers Protest High Bills

As the committee met on Monday, people lined the sidewalk outside the City-County Building to protest soaring property tax bills.

The state had estimated that homeowners would see an average increase of 24 percent statewide this year, but residents in parts of some counties, including Marion County, have seen much higher increases.

"It makes me very angry. That's not fair taxation. That is not government for the people," Marion County homeowner Judith Beaty said.

Some of the protesters also were upset about Peterson's proposal to raise the county income tax.

"We're just being stuck with about eight different holes and we're bleeding to death through all of them," protester Jennifer Neal said. "The timing is just poor. I feel they have no idea of the average person and the stresses they're under."

Earlier this year, lawmakers approved rebates that were expected to lower the average property tax increase to just less than 8 percent, but the rebates won't be sent until after the year's second installment of property tax bills are mailed in the fall.