Knoxville voters will decide in the upcoming election, on Nov. 4, whether to approve the new $47 million sales tax increase. A proposal supported by several Knoxville City Council and County Commissioners, aims to raise revenue for improved city infrastructure and affordable housing.
The initiative, heavily supported by Mayor Indya Kincannon, seeks to raise the Knoxville sales tax by a half-percent, resulting in the estimated $47 million jump in annual city revenue.
Officials announced that the largest percentages of revenue, approximately $10 million, will go toward affordable housing, followed by $7.5 million allocated for new sidewalk construction — particularly on routes where students walk to school—along with additional funds for traffic infrastructure.
There has been heavy debate recently between Knoxville City Council members about the new tax revenue, filling the funding gaps left by the federal and Tennessee state government, helping Knoxville account for ongoing growth.
Supporters of the sales tax hike claim that it provides necessary means for the funding of upcoming projects such as road repairs and affordable housing. Proponents also emphasize that the sales tax increase offers a way to secure greater revenue, while maintaining property tax rates — a rate that has been steady since 1999.
The highest percentage of sales occurs in the greater Knoxville metro area, and supporters of the increase argue that visitors of Knoxville will incur most of the burden via revenue from tourism.
Opposition voices spoke out against the tax increase at an Oct. 14 press conference at The Press Room in Knoxville. Among these, were Knox County Commissioners Rhonda Lee, Andy Fox and Angela Russell, along with Knox County School Board members Betsy Henderson and Steve Triplett, as well as State Representatives Michele Carringer and Elaine Davis, each outlining their concerns.
“I think it’s about cutting waste, cutting spending and being efficient with the funds we do have,” Henderson said.
Opponents of the tax increase, like Russell, who has no constituents within the Knoxville City limits, argued that this amounts to taxation without representation.
In an Oct. 13 press release, Henderson said the tax increase, “would place an unnecessary burden on families and small businesses already facing high costs.”
“Government should live within its means, just like families do,” said Henderson. “Knoxville does not have a revenue problem. It has a spending problem.”
The officials at the press conference believe that the city should allocate funding into different sectors, highlighting integral government services. Fox, an advocate of less spending, noted the $1.2 million price tag of the art piece in Cradle of Country Music Park, commissioned by the city of Knoxville.
“The city has talked about different initiatives that are important to them such as sidewalks, such as parks, such as affordable housing. I think they do have the money to do those things, they just need to make it a priority,” Henderson said.
Henderson, who announced her candidacy for Knox County Mayor in 2026, spoke out against the tax hike earlier this morning at a news conference.
“The city has increased taxes over the past four years, two times, so this will be the third tax increase from the city, and enough is enough,” Henderson said.
