Knox County Leaders Oppose Knoxville Sales Tax Increase as Early Voting Begins
A group of Knox County and state leaders are urging voters to reject Knoxville’s proposed $47 million sales tax increase as early voting begins for the November 4 election.
At a press conference held at The Press Room in Knoxville, School Board Member Betsy Henderson joined State Representatives Michele Carringer, R-Knoxville; Elaine Davis, R-Knoxville; and Justin Lafferty, R-Knoxville, along with County Commissioners Andy Fox, Rhonda Lee, and Angela Russell, to speak out against the measure.
The proposal, placed on the ballot by the Knoxville City Council at the request of Mayor Indya Kincannon, would mark Knoxville’s third major tax increase in three years, following a 2022 property tax hike and a 2023 hotel tax increase.
Opponents argue the city’s spending has grown unsustainably and that another increase would further burden residents already managing rising costs.
“The city has raised taxes twice in three years and now wants another $47 million from working families,” said Betsy Henderson, who organized the press conference. “Government must learn to live within its means, just like the people it serves. Knoxville doesn’t have a revenue problem. It has a spending problem.”
“Families in Knoxville are doing everything they can to manage rising costs, and they expect the same commitment from their local government,” said Carringer. “This tax hike is just another example of out-of-touch leadership that prioritizes spending over cutting waste.”
“Prepared food, diapers, cleaning supplies — these are essentials that families already struggle to afford,” said Davis. “Raising sales taxes now would make it even harder for working parents to make ends meet.”
What the Proposed Tax Would Do
The measure would raise the city’s local sales tax rate from 2.25 percent to 2.75 percent, bringing the combined state-and-local rate for most shoppers to 9.75 percent.
City finance officials estimate the increase would generate $47 million annually for Knoxville’s Neighborhood Infrastructure Five-Year Investment Plan, which funds:
Road paving, sidewalks, and traffic-calming improvements
Affordable housing investments (about $10 million annually)
Greenway and park maintenance
Deferred maintenance on city-owned buildings and facilities
Mayor Kincannon has argued the tax hike is to support infrastructure needs across all of Knoxville.
“Our city is growing, but so are the needs of our community,” said Kincannon. “It is time to invest in the critical needs of our growing community.”
Tennessee’s Sales Tax Context
Tennessee’s base sales tax rate is 7 percent, according to the Tennessee Department of Revenue. Local governments may add up to 2.75 percent through voter-approved referenda.
Knoxville currently levies a 2.25 percent local rate, resulting in a 9.25 percent total sales tax on most goods. The proposed half-cent increase would raise the combined rate to 9.75 percent, matching several nearby Tennessee cities.
The Tax Foundation ranks Tennessee among the top five states nationally for combined state and local sales tax rates.
Election Information
Early voting runs October 15–30, with Election Day on November 4, 2025.
Voters will also select representatives for five City Council districts (1, 2, 3, 4, and 6) on the same ballot.
