KNOXVILLE, TN (Story courtesy of WVLT) – Betsy Henderson, who’s running to be the next mayor of Knox County, thinks the City of Knoxville needs to tighten its budget, not raise taxes to fund priority projects. It’s a sentiment even those who support the tax increase agree with.
Henderson was the face of a news conference Tuesday, getting ahead of the early voting period and opposing Knoxville Mayor Indya Kincannon’s proposed sales tax increase.
Not far from her, spokespersons for the nonprofit Sierra Club held their own conference asking city voters to approve the increase. The nonprofit advocates for environmental and community improvements across the country, not just in Knoxville, though it was Knoxville’s chapter that spoke up.
What is the tax increase for, and how much is it?
Kincannon has proposed a half-percent increase — from 2.25% to 2.75% — for Knoxville’s sales tax. It would mean city shoppers would pay an extra penny for every two dollars they spend and bring the city’s rate up to par with other areas of East Tennessee like Sevier, Blount and Anderson counties.
The city has put together a website to showcase the tax, which breaks down Kincannon’s plan for spending the extra money:
City-wide Spending
| Project | Annual Spending | Five-Year Spending |
|---|---|---|
| Road Paving | $4,000,000 | $20,000,000 |
| Neighborhood Traffic Calming and Safety | $2,500,000 | $12,500,000 |
| Housing | $10,000,000 | $50,000,000 |
District-wide spending
| Project | Annual Spending | Five-Year Spending |
|---|---|---|
| Sidewalks | $7,500,000 | $37,500,000 |
| Parks | $10,000,000 | $50,000,000 |
| Greenways | $8,000,000 | $40,000,000 |
| Facilities | $5,000,000 | $25,000,000 |
The tax increase is also full of exceptions for items like groceries, rent, gas healthcare and utilities.
Knoxville-area groups and politicians at odds over tax increase support
The current Knox County school board member, like many of her conservative allies, opposes raising taxes.
“I’ve had several conversations with officials, but what matters to me is the people and the voters are really against this tax hike increase,” Henderson said.
That said, Chairperson for the Harvey Broom Group of the Sierra Club Jerry Thorton said the increase isn’t a huge ask and would fund projects that have real impacts on families.
“We believe that the very small tax increase proposed by the mayor will provide much-needed funding for investment and improvements in all areas of the city,” Thorton said.
Specifically, the Sierra Club spokesperson said the projects would benefit everyone who lives in and around Knoxville.
“Studies have shown that access to greenways and parks and natural areas is very helpful to the physical and emotional well-being of citizens,” he said.
In contrast, Henderson said she is, and always will be, opposed to any sort of tax increase.
That opinion — that the city should put the money it already makes toward priority projects, rather than increase taxes — is a bit of common ground among Henderson and the Sierra Club.
Tax increase opposition and advocates agree: the city should budget better
Henderson’s big takeaway after her media event: the City of Knoxville should take the money it already has and put that toward projects like affordable homes for families, sidewalks and parks.
“I think that they do have the money to do those things,” the county mayor-hopeful said while speaking with news media after the conference. “They just need to make it a priority.”
Thorton agreed. He opened the Sierra Club’s conference with a similar statement:
“We feel strongly that each of these types of improvements and projects should be included in the normal budgeting process and planning and development by the city without additional taxes,” Thorton said.
However, Thorton also pointed to a lack of federal investment in those city projects.
Even facing federal dollar shortages, Henderson, who could one day act as the head of Knox County, did have recommendations for the city.
What does Henderson propose instead?
Henderson stood by her claim that the city should find money in its accounts rather than ask for more from tax payers.
“As mayor, I will oppose any tax increases, whether it be property, whether it be sales tax, and just focus on those core government services,” she said. “I would like to see the county do a five-year or four-year strategic plan.”
“I will always represent the people,” she said. “I will always stand up and I will always fight for families, and that means opposing any tax increases.”
Who decides if taxes go up?
The tax increase proposal is on the ballot for the city’s November election. Early voting starts Wednesday.
