Knoxvillians weigh in on proposed sales tax increase to fund local improvements
KNOXVILLE, Tenn. (WATE) — Earlier this week, Knoxville Mayor Indya Kincannon announced she would ask the city council to put a half-cent local option sales tax increase on the November ballot. If approved, the increased sales tax could raise as much as $47 million for things like affordable housing, neighborhood investments, and park improvements.
6 News went out to Market Square to ask people residents their thoughts on the proposal. The proposed increase would raise the current rate of 2.25% to about 2.75%, bringing it in line with several other Tennessee counties.
Knoxville mayor announces possible sales tax increase
'Initially thinking about it, I think it's a good idea. My only concern is when it comes to government, the money doesn't always go where they say it's going to go. So if they can show that that money will go to where it's supposed to go. Unfortunately, every day I'm seeing more and more homeless, and it breaks my heart. So if the money goes to the right place, I'm for it, ' said resident Uri Sankowski.
The City of Knoxville has released a breakdown of how the revenue would be spent each year. There would be $10 million allocated for affordable housing, $5 million for facilities and maintenance, $12 million for road paving and greenways, $10 million for parks, and another $10 million for sidewalks and traffic calming.
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'I'm actually a very large advocate for sidewalks, especially in some of the outskirts of towns like Bearden. On the north side of 1-40, there's entire neighborhoods that don't have any sidewalks,' said Rachel Young. 'So if we did have something like that and have affordable housing mixed with that urban improvements, that would be incredible.'
Groceries would be exempt from the raised sales tax, as well as other significant household expenses like gas, utilities, rent, diapers, and baby formula.
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'In general, I oppose it, but if it happens, it happens. And if we see it going towards good things, then I support it,' said Chris Adkins. 'Any time taxes go up, that's not a great thing. But obviously there are programs in situations where we need the money.'
Mayor Kincannon said the city must invest in its growing needs.
'I think Knoxville is a very progressive town, and that's part of the reason why I moved here,' Young added. 'I'm not from Tennessee, but I really love the vibe and the culture of Knoxville and part of the reason why is because Knoxvillians always love to help people and it's the Volunteer State. So why not volunteer a half a cent?'
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The next step for the proposal will be a City Council workshop that will likely happen next Thursday, allowing the council to become more informed on their decision. The final vote will happen sometime in June and if passed, it will be placed on the November 2025 citywide ballot for voters to decide. Should voters approve the increase, it will take effect starting March 1, 2026.
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