Knoxville Mayor Proposes Half-Cent Sales Tax Increase to Address $70M Infrastructure Gap

Knoxville Mayor Indya Kincannon has proposed a half-cent increase in the city's sales tax, aiming to close a $70 million funding gap for infrastructure and community projects. The increase would raise the local sales tax rate from 2.25% to 2.75%, bringing the combined state and local rate to approximately 9.75%, marking the first such increase since 1988. Funds generated, projected to be about $47 million annually, would target affordable housing, neighborhood improvements, parks, roads, sidewalks, and maintenance, accelerating long-term projects from a twenty-year timeline to five years. The tax would exclude groceries as defined by Tennessee law. The proposal requires approval from the Knoxville City Council to be placed on the November ballot, where voters will ultimately decide its fate. Mayor Kincannon emphasized the urgency due to Knoxville’s growth, increased visitors, and mounting infrastructure demands, underscoring the importance of local funding to meet these challenges.