Knoxville City Council voted to place a proposed one-half of one percent local-option sales tax on the Nov. 4 ballot and approved a companion ordinance exempting the retail sale of food and food ingredients.

The council followed public testimony from neighborhood and transportation advocates and several residents before approving the tax measure and a separate “grocery carve-out” that would exempt groceries from the increase if voters approve it. The council also approved a related resolution expressing the council’s expectation that revenue, should voters approve the measure, will be spent according to the five-year neighborhood investment plan and directing enhanced public reporting and transparency on how the funds are used.

Why it matters: Proponents said the tax would generate new local revenue to accelerate sidewalks, greenways, neighborhood traffic-calming projects and affordable-housing investments. Opponents and some council members said the council should take a clearer stand now on how the city will protect the funding from being repurposed in future budgets and asked for more detail about personnel cost pressures that are not part of the plan.

Supporters stressed the measure’s neighborhood focus. Zoe Scott, advocacy director for Bike Walk Knoxville, said the plan prioritizes sidewalks “within one mile of elementary schools and one and a half miles of middle and high schools” and includes maintenance and extensions of greenways.

Dustin Durham, speaking for Yes Knoxville, said the proposal would let nonresidents who visit the city help pay for infrastructure and estimated the extra cost to a household near median income as “about $7 more a month.” He urged council to let voters decide. Eddie DeBusk, a longtime Knoxville resident, also urged the council to “let the citizens of Knoxville vote” on the proposal.

Council debate focused on two consistent concerns: (1) whether the revenue could be diverted by a future council or mayor and (2) how a countywide adoption by Knox County would alter the city’s share. Council members and staff clarified that if Knox County places the same tax on the county ballot and county voters approve it, the city’s net revenue from this mechanism would be reduced because part of the taxes collected in the city would be distributed through the county arrangement.

Council member Roberto said he supported forwarding the measure to the ballot and flagged that if the county joins, “50% of all sales tax collected in the city would go to Knox County Schools,” reducing the city’s estimated take. Council member Parker opposed putting the measure on the ballot, citing unanswered questions about growing personnel costs and whether the plan’s commitments would be honored in future budgets.

On council’s efforts to lock spending promises to voters, Vice Mayor Smith introduced a resolution to document the city’s intent and reporting expectations should voters approve the tax. Legal counsel explained the limits of what the council can bind future legislatures to do — a principle called “legislative entrenchment” — and noted that only a charter amendment, constitutional provision, treaty or certain long-term contracts can create permanent obligations that bind successors. Council members said the resolution is the strongest form of public commitment they can make now and that continued transparency, a public tracker and civic oversight would be needed to hold future leaders to the plan.

Votes and outcome: The council approved the ordinance to place the half-percent local-option sales tax on the Nov. 4 ballot and passed the grocery exemption ordinance and the accountability resolution.

Clarifying details: The neighborhood investment plan includes a dedicated allocation for neighborhood traffic calming of $12,500,000 over five years and prioritizes sidewalks in defined school “parental responsibility zones.” The exact projected revenue amount referenced during the meeting was not specified in the public record provided to the council during final vote discussion. Council and staff said a countywide adoption would materially reduce the city’s estimated share (described in council remarks as roughly halving the city’s take in the event the county adopts the same measure).

What happens next: Because the council approved the ordinances, the measure will appear on the Nov. 4 ballot for Knoxville voters to decide. If voters approve it, the administration said it will implement public reporting and tracking of project spending tied to the five-year plan and will return to council for budget decisions required under the normal budget process.