INDIANAPOLIS -- A conservative lobbyist on Monday proposed a state constitutional amendment abolishing property taxes, but a tax reform panel that heard the plan questioned whether it is viable, 6News' Norman Cox reported.

The amendment proposed by Eric Miller, a lobbyist and a former gubernatorial candidate, would require a resolution passing two separately elected General Assembles and then winning approval in a statewide vote during a general election. The earliest the process could be completed is November 2010.

Miller made the proposal to the Commission on State Tax and Finance Policy, which is examining ideas to ease property tax burdens after huge increases in the past few years.

"People are hurting, scared and worried about the future," Miller told the panel. "They're tired of rhetoric and finger-pointing, and they want solutions. The American dream of buying a home has become a nightmare for many Hoosiers."

To replace property tax revenue, Miller's plan would raise the state sales tax from 6 percent to 8 percent, the individual income tax from 3.4 percent to 4.4 percent, increase or create a new business tax, and place new caps on spending by state and local governments.

He said the plan would result in enough revenue to replace property taxes, and the constitutional amendment would ensure a permanent end to property taxes.

Miller said other taxes have been raised in the past to reduce property taxes, but they ultimately begin to climb again.

Lawmakers questioned Miller's numbers, some doubting the plan would be enough to eliminate property taxes.

Some also criticized Miller's plan to freeze state spending for several years to create a fund to replace property taxes once the amendment passed. They said it's unrealistic and fails to help people now.

"You're going to save up this pot of money that hopefully will be for a good purpose, and it could well be. But the people don't need a pot of money six years from now. The people need some relief today," said state Rep. Jeffrey Espich, R-Uniondale.

The Legislative Services Agency told the panel Monday that property taxes could be eliminated if the state's sales tax was increased from 6 percent to 13.2 percent or by raising the individual income tax from 3.4 percent to 9 percent.

Each option could raise the $6.2 billion that property taxes are bringing in this year to pay for local governments and schools, according to the LSA.

A third option, according to the LSA, would be to raise the sales tax to 11.1 percent and extend it to cover not only merchandise, but services such as haircuts and car repairs.

Bluffton Mayor Ted Ellis, a former president of the Indiana Association of Cities and Towns, told the panel that property taxes should retain a place in local funding because they are less susceptible to the volatility of economic cycles.

"Property taxes are as certain a revenue as there is," Ellis said. "That certainly gives us the opportunity to issue bonds at the lowest possible rate."

Senate Tax Chairman Luke Kenley, R-Noblesville, said it was one thing to talk about eliminating property taxes, but another to actually do it.

"The purpose of this commission is to find real answers to real problems and measure factually whether we can get their or not," said Kenley, who is chairman of the commission.

The commission plans to meet again on Sept. 17. It may have recommendations for the General Assembly to consider as early as an organization day in November.