News Summary
Knoxville Mayor Indya Kincannon has proposed a one-half of one percent increase in the city’s sales tax, aiming to raise an additional $47 million annually for community initiatives. The plan, exempting essential goods, will be debated in the upcoming city council meeting and could be placed on the November ballot. Approval is contingent upon a vote from Knox County residents. The proposed increase is essential to fund various infrastructure improvements as the city’s population continues to grow.
Knoxville City Council to Consider Sales Tax Increase Proposal
Knoxville Mayor Indya Kincannon has proposed a one-half of one percent increase in the city’s sales tax. This proposal will be discussed during the Knoxville City Council meeting on Tuesday evening. The proposed sales tax increase aims to generate an additional $47 million annually for the city if approved and could appear on the November ballot for city voters.
Under the current proposal, essential items such as groceries and food ingredients will be exempt from the sales tax increase. If the Knoxville City Council approves the measure, it will then be up to Knox County residents to vote on the tax increase. A “No” vote from Knox County residents would nullify the city’s proposed sales tax increase.
Details of the Proposal
The current sales tax rate in Knoxville stands at 9.25%, which comprises a 7% state tax and a 2.25% local distribution tax. If the sales tax increase is authorized, the new rate would rise to 9.75%. Mayor Kincannon indicated that the projected revenue would assist in funding important community initiatives, including road paving, affordable housing, greenways, sidewalks, parks, and addressing deferred maintenance. The city is anticipating a population growth of 79,000 new residents in Knox County by 2040, making these infrastructure improvements crucial.
City Council Agenda Highlights
In addition to the sales tax discussion, the city council will consider several other important items during the meeting. An agreement for automated enforcement camera systems to monitor speeding in school zones and managing excessive motor vehicle noise will also be on the agenda. Notably, this enforcement system is provided at no cost to the city.
The council plans to honor the late 3rd District Councilwoman Brenda Palmer with a resolution sponsored by the entire council. The proposed sale of a property at 412 Ocala Drive for $40,250 to Gary Chesney under the Homemakers Program will also be reviewed, as well as a potential sale of a lot on Moody Avenue to Michael Seemer for $4,444.
Police Department Funding Initiatives
The Knoxville Police Department (KPD) may receive an extension of a state Victims of Crime Act grant totaling $150,546. They are also seeking approval for a $25,000 request from the Helen Ross McNabb Center to support the Sexual Assault Center of East Tennessee.
Zoning Changes and Planning Commission Appointments
In terms of regulatory changes, an amendment to city codes for the conversion of a building into a two-family duplex is under consideration. The council will also discuss zoning changes for properties located at 4301 and 4311 Kingston Pike from RN-1 to RN-3 residential neighborhood. A proposed change from General Industrial to Highway Commercial for 1501 North Cherry Street will also be on the agenda.
Furthermore, Mayor Kincannon will reappoint Marite Perez and appoint Margaret Butler to the planning commission, enhancing the council’s expertise in urban planning and development.
Public Engagement and Transparency Concerns
Public concerns have arisen regarding the transparency of the tax proposal and its potential burden on families already managing tight budgets. The city aims to address these concerns through community feedback and public engagement prior to any votes on the proposal.
Should both city and Knox County voters approve the tax increase, it is expected to become effective on March 1, 2026.
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Additional Resources
- WATE: Knoxville Mayor Announcement May 22, 2025
- Knox News: Knoxville Sales Tax Hike Proposal
- The Center Square: Knoxville Sales Tax Increase
- WBIR: Knoxville Mayor Proposes Sales Tax Increase
- Inside of Knoxville: Mayor Proposes Sales Tax Increase
- Wikipedia: Taxation in the United States
- Google Search: Knoxville Sales Tax Increase
- Google Scholar: Knoxville City Council
- Encyclopedia Britannica: Taxation
- Google News: Knoxville Mayor Indya Kincannon Sales Tax Increase
