Mayor Indya Kincannon is asking City Council to put a ½ cent Local Option Sales Tax increase on the November ballot. It is a move that, if approved by the voters, could generate as much as $47 million for:

• More affordable housing
• Increased investments in our neighborhoods
• And, deferred maintenance at our parks and City properties




"It is no secret that more people are moving here, the number of visitors here is skyrocketing, and our infrastructure is being pushed to its limits," said Mayor Kincannon. "This budget cycle alone, we had more than $70 million in infrastructure requests that can’t be funded. With so much uncertainty, it is more important than ever that we take action to generate more local dollars for local projects.

"This is Knoxville’s time. 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."

Mayor Kincannon’s proposal would exempt groceries from the new tax.  

Right now, the state of Tennessee has a 7% sales tax on items purchased across the state. Municipalities may charge a Local Option Sales Tax to generate money for their community’s needs. Since 1989, Knoxville’s Local Option Sales Tax has been 2.25%. This proposal would change that to 2.75%.

Currently, most communities in Tennessee, including 5 neighboring counties (Anderson, Blount, Sevier, Jefferson, and Grainger), have optimized their Local Option Sales Tax over the past few decades to generate much-needed local dollars.

"I want to give Knoxville voters that same option," said Mayor Kincannon. "This also means everyone who spends money in our city, not just those who live here, will be contributing to the services they rely on.

"At the same time, I have thought about the impact this would have on local families. That is why I made the decision that groceries, often a family's biggest expense, will be excluded from this additional tax."

Mayor Kincannon has asked City Council for a workshop on this initiative. 

A Council vote will happen in June. If passed, it will be placed on the November 2025 citywide ballot, and voters will ultimately decide.

For more information, go to KnoxvilleTN.Gov/LocalOption.