KNOXVILLE IS CATCHING UP: NEIGHBORING COUNTIES ALREADY MAXIMIZE LOCAL OPTION SALES TAX

Neighbors for Knoxville calls on city voters to support the upcoming sales tax referendum, which would raise the local option sales tax in the City of Knoxville to match that of surrounding counties, from 2.25% to 2.75%.

Counties surrounding Knox County including Anderson County, Blount County, Sevier County, Jefferson County and Grainger County, have long since adopted the  2.75% local option rate. 

Anderson County enacted its 2.75% local option sales tax in 2006, Jefferson County enacted it in 2008, Sevier County enacted it 2009, Blount County enacted it 2014 and Grainger County in 1994. Cocke County has maximized its local option sales tax since 1989.

In fact, a total of 62% of Tennessee counties have a 2.75% local option sales tax.

By aligning our rate with neighboring counties, Knoxville will keep more of the sales tax generated within the city—investing it directly in sidewalks by schools, greenways, parks, roads and affordable housing. The referendum is a vote for local control, local investment and neighborhood-driven improvements.

If approved, the half-cent increase would generate about $47 million per year for the City of Knoxville for neighborhood infrastructure projects.

What this means for everyday purchases

The increase would not apply to groceries, rent, utilities, prescriptions, bus fare, gas or property tax.

Here’s how the local sales tax referendum would affect common purchases in the City of Knoxville. If residents already make these purchases outside of the city limits, they will see no change in cost.

Toilet paper (12-pack): 

• Current cost in Knoxville: $7.63

• Cost in Anderson, Blount, Sevier, etc., and Knoxville if referendum passes: $7.66

• Difference of 3 cents

Coffee, local coffee shop: 

• Current cost in Knoxville: $3.88

• Cost in Anderson, Blount, Sevier, etc., and Knoxville if referendum passes: $3.90

• Difference of 2 cents

Adult T-shirt:

• Current cost in Knoxville: $27.30

• Cost in Anderson, Blount, Sevier, etc., and Knoxville if referendum passes: $27.43

• Difference of 13 cents

Car purchase: Local sales tax only applied to the first $1,600

• Current local tax applied in Knoxville: $36

• Local tax applied in Anderson, Blount, Sevier, etc. and Knoxville if referendum passes: $44

• Difference of $8

Neighbors For Knoxville invites all city residents to review the Neighborhood Investment Plan and cast their vote during early voting now through October 30 or on Election Day, November 4.