Mayor Kincannon proposes half‑cent local sales tax; pledges grocery exemption and project accountability

Mayor Seema Kincannon asked the City Council at a workshop to send a half‑cent increase in the local option sales tax to Knoxville voters, saying the measure would raise an estimated $47 million annually and pay for sidewalks, road paving, greenways, parks, facilities maintenance and additional affordable‑housing investment.

The proposal would raise the local option rate in the city from 2.25 percent to the state maximum of 2.75 percent; state law caps the local option at 2.75 percent and limits that portion of the tax to the first $1,600 of any purchase. Kincannon said the increase must go to voters under state law and that, if approved in November, the new rate would take effect March 1.

Why it matters: Kincannon framed the request as a way to address growing deferred maintenance and to accelerate plans already in the city’s capital and master plans. “This is about our future,” she told council members, saying the city is approaching 200,000 residents and that rising usage of parks and roads is increasing wear and tear.

Details of the proposal and timing - Estimated revenue: Kincannon said the half‑cent could raise about $47 million based on the last full fiscal year’s sales tax revenue; she noted the amount can fluctuate with consumer spending. If Knox County chooses to bring the question countywide and the countywide measure passes, she said the city would retain…