Local Option Sales Tax

The Facts on Local Option Sales Tax:

  • Local Option Sales Tax is a 1% sales tax on the purchase of goods and services within the City of Knoxville.
  • Anyone (resident or visitor) purchasing taxable goods and services in Knoxville pay the 1% sales tax. This includes Tourists, Visitors and those who spend money in Knoxville. This group provides a substantial amount of revenue under this tax.
  • The City of Knoxville has had a 1% Local Option Sales Tax in effect since 2004. The tax will remain in effect until December 2024. The Knoxville City Council is looking to renew this 1% Local Option Sales Tax with the help of the residents of Knoxville at the November 2, 2021 election.
  • This Tax will continue to enable the City of Knoxville to fund capital improvement projects which may include street improvements, park and trail improvements, public safety facilities, economic development, purchases of capital equipment, and other community betterment projects. All without increasing regular property taxes.
  • 50% of the Local Option Sales Tax will be allocated towards property tax relief. Tax relief can be reducing property tax rate or avoiding an increase, or both.

A list of FAQ is available here

LOSST Renewal Flyer

How is Local Option Sales Tax Used in Knoxville?

Public Safety

  • Police Vehicles
  • Fire Engines
  • Ambulances
  • Self Contained Breathing Apparatus (SCBA)
  • Turnout Gear
  • Radios
  • Cardiac Monitors
  • In Car Computers






Parks & Recreation Department

  • Mowers and Maintenance Equipment
  • Kubota
  • Dectron Unit (heats and cools pool)



Graceland Cemetery 

  • Mowers and Maintenance Equipment
  • Backhoe
  • Tractor
  • Dump Truck



Library & Administration Departments

  • Public Access Computers
  • Servers & IT Equipment



Other Projects

  • Downtown Streetscape 
  • Street Improvement Projects
  • Sidewalk Rehabilitation Program
  • Economic Development Support
  • Competine Trail Improvements





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