Residents of Knoxville could see themselves making a pivotal decision on the city’s sales tax rate as Mayor Indya Kincannon pushes for a half-cent increase. This proposal, announced by Mayor Kincannon on Thursday, is aimed at addressing a $70 million shortfall in funding for infrastructure needs, as reported by WATE. The mayor highlighted in her announcement that despite the passage of the budget, these crucial projects remain unfunded.
The proposed tax adjustment would mark the first change since 1988, bringing the city’s sales tax rate from 2.25% to 2.75% and the total, when combined with the state’s 7%, to a rounded figure of 9.75%, WVLT reports. The importance of the decision is underscored by the fact that the last time Knoxville raised its local option sales tax was over three decades ago.
Without the tax increase, KCS is projected to receive $253 million in sales tax revenue in 2026. If the county joins the plan, that could rise to around $290 million, though the total would be lower if groceries are exempted, Knox News explains.
