Knoxville Sales Tax Increase Criticized By County Officials

Image Credit: Betsy Henderson / Facebook

The Tennessee Conservative [By Adelia Kirchner] –

During a Tuesday morning press conference, Knox County officials shared their opposition against Democrat Mayor Indya Kincannon’s proposed local sales tax increase.

The current sales tax rate in Knoxville is 9.25%.

7% of that sales tax goes to the state.

This means that the current local option sales tax for the area is 2.25%, 28% of which is kept by Knoxville and Knox County with 72% going to schools.

Earlier this year, Mayor Kincannon proposed an increase of the local sales tax from 2.25% to 2.75%.

Knoxville voters will make the final decision on the tax increase in the upcoming general election.

Mayor Kincannon has said that Knoxville will use the additional funds from the increase to expedite city projects like affordable housing, parks, greenways and road paving, sidewalks, and traffic calming.

Groceries, prescriptions, utilities, gas and rent would be exempt from the tax increase.  

“This is Knoxville’s time,” Mayor Kincannon said back in May of this year. “Having the resources to address housing, neighborhood and infrastructure needs will enable us to build the best version of Knoxville to better serve our residents and visitors. And our children will thank us for responsibly making these needed investments, instead of kicking the can down the road.”

However, some elected officials are not as optimistic about the proposal.

According to WATE, Knox County School Board member and candidate for county mayor, Betsy Henderson, argued during Tuesday’s press conference that Knoxvillians cannot afford higher taxes and that the city could still achieve its goals without increasing the tax rate. 

Henderson highlighted the concern that if the city raises its tax rate, the county may do the same.

“Government must live within its means, just like families do,” Henderson said. “Knoxville does not have a revenue problem. It has a spending problem.”

Knox County Commissioner Angela Russell also spoke, saying that the increase would be unfair to county residents shopping inside city limits. 

Russell argued that these individuals pay the city sales tax but don’t get City Council representation because they reside outside of the city limits.

“This isn’t just a city issue. This is a regional tax hike,” said Russell.

Another Knox County Commissioner, Andy Fox, believes the city should focus on “core government services” like roads and public safety, not affordable housing and art projects like the $1.2 million Cradle of Country Music Park piece.

Knoxville residents will be able to vote on the above proposed tax increase during the upcoming November 4^th general election. Early voting begins October 15^th and goes through October 30^th.

About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee.  You can reach Adelia at adelia@tennesseeconservativenews.com.