Knoxville TN, October 13, 2025
News Summary
Knoxville’s residents are facing a crucial decision in the upcoming elections as a proposed 22% increase in the city’s sales tax looms. With concerns rising over the impact on lower and middle-income residents, city council members are divided. The election outcome could reshape fiscal strategies, with five council districts up for grabs. The vote, set for June 24, is seen as pivotal for Knoxville’s financial future amidst ongoing debates over property taxes and funding for affordable housing.
Knoxville residents are being urged to vote in the upcoming November 2023 elections due to significant issues facing the city, particularly a proposed sales tax increase of 22% on the city portion of the sales tax. This increase comes in tandem with a recent property tax hike orchestrated by Mayor Indya Kincannon, who previously pushed for a 40% increase in property taxes. With five seats on the Knoxville City Council up for election, the outcome of the elections could influence the financial future of the city.
The current sales tax in Knoxville is approaching 10%, meaning Knoxvillians pay ten cents on every dollar spent on essential goods. If approved, the new sales tax would raise the total shopping tax to 9.75%, with 7% going to the state and 2.75% to the city. Grocery items will be exempt from this sales tax increase, but the implications for lower and middle-income residents are raising concerns among critics.
Many city council members and Kincannon justify the tax increases in the name of “affordable housing.” However, the community questions the benefits of such developments for current residents. There are widespread fears that increased subsidized housing could displace middle-class residents and the elderly, pushing them further out of affordable neighborhoods.
Critics argue that rising property taxes, exemplified by Kincannon’s actions, have led to a surge in rents and mortgages for those not qualifying for subsidized housing. Residents have expressed a growing discontent regarding the city administration’s focus on progressive spending initiatives, particularly amidst recent cuts to police services and the increase in insurance costs due to the city’s handling of accident responses by ambulances.
Amidst these concerns, Councilman Andrew Roberto has opposed the sales tax increase, citing unclear plans on how the additional revenue would be spent, despite having supported the previous property tax hike. Council member Debbie Helsley has independently voiced her dissent against Kincannon’s plans, which aligns with a broader call from residents to vote “NO” on the tax increase to protect their financial well-being.
The sales tax increase is pending a final vote on June 24. In the meantime, recent developments suggest that the financial prospects of the new major league baseball stadium in Knoxville are outperforming expectations for sales tax revenue, potentially easing some concerns about budget shortfalls.
Kincannon’s proposed budget for 2026 notably avoids raising property taxes, steering clear of controversial measures while emphasizing community-driven initiatives. The budget anticipates revenue of approximately $47 million from the proposed sales tax increase, which would be allocated to infrastructure projects.
The city’s voting procedures have also changed, allowing only district residents to vote for their district’s representatives. As such, elections for Council Districts 1, 2, 3, 4, and 6 will be held, with term-limited representatives stepping aside for new candidates.
FAQ
What is the proposed sales tax increase in Knoxville?
The proposed increase is 22% on the city’s portion of the sales tax, which would raise the total shopping tax in Knoxville to 9.75%.
When is the vote on the sales tax increase?
The sales tax increase is pending a final vote on June 24.
What is the planned use for the revenue from the proposed sales tax increase?
The proposed budget includes projected revenue of $47 million from the sales tax increase for infrastructure projects.
Which city council seats are up for election?
Five seats on the Knoxville City Council are up for election: Districts 1, 2, 3, 4, and 6.
| Feature | Details |
|---|---|
| Current Sales Tax Rate | Approaching 10% |
| Proposed Sales Tax Increase | 22% on the city portion |
| Total Proposed Sales Tax Rate if Passed | 9.75% (7% state, 2.75% city) |
| Projected Revenue from Increase | $47 million for infrastructure |
| Counsel Districts Up for Election | 1, 2, 3, 4, and 6 |
| Vote Date for Tax Increase | June 24, 2023 |
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Additional Resources
- Times Free Press: What Knoxville Stadium Revenue Success Could Mean
- WATE: Knoxville Mayor Announcement – May 22, 2025
- Knox News: Knoxville Increasing Sales Taxes – City Council Vote
- WBIR: Sales Tax in Knoxville This Weekend
- Wikipedia: Sales Tax in the United States
Author: STAFF HERE KNOXVILLE WRITER
The KNOXVILLE STAFF WRITER represents the experienced team at HEREKnoxville.com, your go-to source for actionable local news and information in Knoxville, Knox County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Dogwood Arts Festival, Big Ears Festival, and Knoxville Asian Festival. Our coverage extends to key organizations like the Knoxville Area Chamber Partnership and United Way of Greater Knoxville, plus leading businesses in healthcare, education, and energy that power the local economy such as Covenant Health, University of Tennessee, and Tennessee Valley Authority. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
