KNOXVILLE, Tenn. (WATE) — If Knoxville voters ultimately approve a proposed local option sales tax increase next month, the city has pledged to invest up $10 million annually from the new revenue towards affordable housing.
The Knoxville City Council unanimously approved a resolution on Wednesday designating 22% or up to $10 million of new revenue from the proposed increase to the Knoxville Affordable Housing Fund.
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Voters will soon decide whether to support or reject Mayor Indya Kincannon’s proposal to increase the local option sales tax from 2.25% to 2.75%. City officials say it would generate up to $47 million of additional revenue each year and allow 20 years-worth of improvement projects to be completed over the next five years.
A list of projects that would be supported by the proposal was released in June, including 75 additional miles of road paving, sidewalks within one mile of schools, and affordable housing as well as overdue city park maintenance.
Will Knoxville voters approve the proposed sales tax increase?
The Knoxville Affordable Housing Fund was approved in 2021, committing $50 million over 10 years to incentivize the development of affordable rental housing. City officials said that over 1,200 affordable housing units have opened in Knoxville this year…