Knoxville voters decide against raising sales tax inside city limits

KNOXVILLE, Tenn. (WVLT) – Thousands of voters in the City of Knoxville went to the polls to cast their vote on Tuesday.

Among the key items on the ballot for Knoxvillians were five city council seats and whether or not to raise sales tax inside city limits.

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Mayor Kincannon speaks after sales tax referendum fails to pass

With all of Knoxville’s precincts reporting voting results, it is official that voters have decided not to raise the sales tax inside city limits.

The matter failed with 61.55% voting against it and 38.45% voting for it.

Had the sales tax increase passed, it would have raised the city’s sales tax rate by a half-percent from 2.25% to 2.75%, which is on top of the 7% sales tax Tennessee charges across the state.

Former Knoxville Mayor Victor Ashe talks city election for city council members, sales tax referendum

The increase would have meant city shoppers would have to pay an extra penny for every two dollars they spend. It would have also brought the city’s rate up to par with other areas of East Tennessee like Sevier, Blount and Anderson counties.

The plan – which Mayor Indya Kincannon said would have excluded groceries, rent, utilities, gas, prescriptions, bus fare and healthcare visits – would have raised $47 million for the city annually, according to city data.

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