Knoxville City Council Approves Sales Tax Increase for November Ballot

The Knoxville City Council has taken the first step toward placing a 0.5% sales tax increase on the November ballot, with a second vote scheduled for June 24. If approved, the city’s sales tax portion would rise from 2.25% to 2.75%, generating an estimated $47 million annually to fund road paving, affordable housing, sidewalks, greenways, parks, and maintenance of public facilities. The proposed increase exempts groceries to mitigate the impact of President Donald Trump's tariffs on food prices. Supporters emphasize improvements to infrastructure and neighborhood amenities, while opponents express concern about the tax burden on lower-income residents. The increase would raise the total sales tax paid by Knoxville shoppers to 9.75%, with the state portion remaining at 7%. Should voters approve the measure, the Knox County Commission may consider extending the increased rate to the entire county.