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The Tennessee Conservative Staff –
The Knoxville City Council approved a proposal on first reading that would raise the hotel and motel tax rate by 1% at their most recent meeting.
If the proposal passes on its second reading, the new rate would be 4%, generating around $2.2 million for the city, according to city leaders. This money would be used for infrastructure maintenance and tourism-related expenses.
Initially, the money was to be used only towards paying down debt owed for the construction of the Knoxville Civic Auditorium and Coliseum. The building is also in need of repairs.
Knoxville Ice Bears owner Michael Murray said, “This building is 64-years-old and obviously, running a business out of a 64-year-old building – it needs to be kept up.”
According to Murray, one of the much needed repairs involves the electrical system. He says the team was forced to reschedule games in December 2023 because of mechanical issues with the building.
“All this talk about maintenance – we have these great facilities that we’ve all used and have great experience with, but if we don’t keep the infrastructure up, we aren’t going to keep the revenue coming in,” stated City Council member Andrew Roberto.
Knoxville Tourism specialist Kim Bumpas of Visit Knoxville says the tax increase would be an asset to those facilities.
“We’re creating a bucket of money that can be used for tourism-related infrastructure. So, to really enhance World’s Fair Park, or the convention center, or the coliseum. I think that’s a great idea,” Bumpas said.
The second reading is scheduled to take place during the City Council’s November 26 meeting.
