Knoxville City Council approves the second reading of Mayor Indya Kincannon’s proposed sales tax increase.
Kincannon’s proposal is for a half-percent increase to the Local Option Sales Tax, which is a tax that allows local municipalities, like cities, to charge their own sales tax on top of the 7% that Tennessee already charges statewide.
The increase would put the city’s rate at 2.75% and Kincannon says this would generate an additional $47 million a year for quality-of-life amenities to all neighborhoods and relieve the strain on public infrastructure.
It would go towards the Five-Year Neighborhood Investment Plan, which prioritizes the following:
- Sidewalks within one-mile of schools (Parental Responsibility Zones, or PRZ), impacting neighborhoods surrounding nearly half the schools in the city
- Repairs to existing greenways, facilities and parks
- Increasing road paving
- 1,000 affordable housing units
During last (Tuesday) night’s meeting, members voted in favor of putting the Local Option Sales Tax referendum, exempt the retail sale of food and food ingredients, on the ballot this November.
