KNOXVILLE, Tenn. — The Knoxville City Council met Thursday afternoon to discuss a proposed half-percent increase in the city sales tax, a measure introduced by Mayor Indya Kincannon that could generate an estimated $47 million in additional revenue for city operations.
If approved, the sales tax rate would rise from 2.25% to 2.75%, providing funds to support a range of city priorities including facility maintenance, park improvements, sidewalk repairs, paving projects, and affordable housing initiatives.
“Maintaining our facilities, it’s parks improvements, sidewalks, paving, and affordable housing,” Mayor Kincannon said, outlining how the funds could be allocated.
The proposal also includes the potential for Knox County to adopt a similar increase. Should the county proceed, state law mandates that half of the additional revenue generated must be directed toward Knox County Schools.
During the meeting, most city council members expressed openness to the proposal, highlighting that the ultimate decision would rest with Knoxville voters.
The city council is scheduled to hold a first vote on June 10 and a second on June 24. If both votes favor the tax increase, the measure will be placed on the November 4 ballot for residents to decide.
Certain essential goods and services would be exempt from the tax increase, including groceries, gasoline, medical visits, and bus fares.
