Indiana State Senator Lindle Hume (D- Princeton) unveiled his property tax reform plan Monday, one day before Governor Mitch Daniels is expected to announce his own plan. Humes version of a reformed tax system would abolish property tax on homesteads, the home where you live. Commercial and industrial property tax would remain. Hume would replace the lost revenue with an increase in state sales tax from 6% to 7%, and a hike in state income tax from 3.4% to 5%. Money collected from those new taxes would go to permanently abolish homestead property tax, reduce renters tax, and create a rainy day fund so the state would never need income from homestead tax again.