Noblesville letter urges shifting city property tax to local income tax to free cap room for schools

Toby Eiler wrote in a letter to Current Publishing (Oct. 13, 2026) that he met with Noblesville Schools Superintendent Daniel Hile and CFO David Hortemiller and concluded the city’s share of property taxes “crowds out” school funding under the state caps, forcing schools to rely on referendums. The letter asserts nearly 90% of property taxes go to the city and Noblesville Schools, notes Indiana’s property tax caps of 1% for homeowners, 2% for rentals and 3% for businesses, and gives the example that a $350,000 home hits a $3,500 maximum tax.

Eiler argues that swapping the city’s property-tax levy for a Local Income Tax (LIT) would “open vital room under the property tax cap” so Noblesville Schools could collect their full operational and debt levies — cited in the letter as $0.801 per $100 — without hitting the cap ceiling. The letter says SEA1 gives Mayor Chris Jensen and the council an opportunity to implement a LIT in 2028 and states the author’s belief that the city will adopt a LIT.

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