Image Credit: United Conference of Mayors / Facebook
The Tennessee Conservative [By Adelia Kirchner] –
Knoxville Mayor Indya Kincannon (D) has decided to follow in the footsteps of Nashville’s Democrat Mayor by increasing the Knoxville city sales tax from 9.25% to 9.75%.
Groceries, baby formula, diapers, gas, utilities and rent would be exempt from the tax increase.
Kincannon made the official announcement last Thursday.
“This is Knoxville’s time,” she said. “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.”
According to Kincannon, this is her way of addressing the $70 million worth of infrastructure requests that went unfunded in her budget this year.
The half a cent tax increase is meant to “boost” the city’s spending power by almost 10%, with the additional tax monies going towards capital improvement projects like affordable housing, paving roads, catching up on delayed public property maintenance, adding sidewalks, greenways and parks.
The additional revenue would be split up like this:
- $12 million for greenways and road paving
- $10 million for affordable housing
- $10 million for facilities and maintenance
- $10 million for parks
- $10 million for sidewalks and traffic calming
The Knoxville City Council still has to approve Kincannon’s proposal and voters will have the final say at the ballot box.
This tax increase could also extend to Knox County if local leadership chooses to follow Kincannon’s lead. Voters would also have the final say on a countywide increase.
7% of the current 9.25% sales tax rate is the amount that goes to the state.
That means 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.
Farragut keeps 50% of the local option sales tax and puts 50% towards schools.
For reference, Union County’s local option sales tax rate is also 2.25%. Other nearby counties like Anderson, Grainger, Jefferson, Sevier and Blount, all have a local option sales tax rate of 2.75%. Loudon County’s local option sales tax rate is only 2%.
Knoxville City Council members will host a public meeting on the issue before voting on two ordinances.
One ordinance to put the tax increase on voters’ ballots and another to say that if the increase passes, groceries will not be included.
Kincannon’s Chief of Staff David Brace told Knox News that if city officials endorse the tax increase, there will be a citywide effort to inform voters on why they believe it is a good idea.
Voters could potentially see the tax increase on their November 4th ballots.
If the tax increase passes in Knoxville and/or Knox County, it will go into effect in March 2026.
Last year, Nashville Mayor Freddie O’Connell announced a similar 0.5% sales tax increase.
On February 1st of this year, the sales tax in Davidson County rose to 9.75% with new revenues going towards the city’s “Choose How You Move” transit plan.
The main difference between Nashville’s tax increase and Knoxville’s proposed tax increase is the exemption of certain essential items from the increase.
While O’Connell said he and his team would research the possibility of eliminating the grocery tax in Davidson County, the recent tax increase did not exempt groceries, baby formula, diapers, gas, utilities or rent, like what Kincannon plans to do.
On a similar note, property tax increases across the state continue to be met by petitions and protests from disgruntled Tennesseans.
Read more about tax increases in Tennessee HERE.
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.
One Response
Lucifer’s cities, cancers on the face of God’s green Earth, steady robbing folks.