INDIANAPOLIS (AP): A proposal to give counties the option to cut the state's business equipment tax is set for review among a panel of Indiana lawmakers.

The Senate tax committee is scheduled hear testimony on the bill Tuesday.

The bill is a response to Gov. Mike Pence's proposal to phase out the business tax.

Pence and supporters say abolishing the tax could make Indiana more competitive and draw business to the state. However, an Indiana Fiscal Policy Institute report shows little evidence that the tax has a strong influence on where businesses settle.

Mayors and other local government advocates stand against the proposed cuts to the tax, which now generates about $1 billion for cities, towns, counties and schools.

The House and Senate have approved differing plans for cutting the tax.