Knox County, TN (story courtesy of WVLT) – Knox County Commissioner Larsen Jay wants to get rid of the county’s wheel tax.
Jay said it was put into place 20 years ago to help pay for some downtown projects. He feels it’s no longer necessary as the county gets enough in its general fund from other taxes.
“If passed, then those projects would just be funded out of the general fund and keep it so it’s not cutting services to people. It’s just peeling back a tax,” Jay said.
Jay said the wheel tax brings in about $15.5 million a year, which is about 1% of the county’s budget. He feels confident with the growth in Knox County that nothing will have to be cut if county commission decides to get rid of this tax.
“A lot of people are coming here. Our sales tax is doing very well, and our community still continues to grow. It’s never a great time for everything to happen all at once, but when you see opportunities and can make it happen financially, then I think you have to take an opportunity to go for it,” Jay said.
He also added six of the eight surrounding counties don’t have a wheel tax and feels this will help the auto industry.
“By repealing this wheel tax, it gives us a chance to be a little more advantageous and a little bit more competitive with our auto dealers,” Jay said.
County commission would have to pass this in two different votes in the next two county commission meetings.
If passed, the wheel tax would get removed in a phased approach with the goal of having it completely removed by 2028.
Jay said if the county’s economy gets better, they could try to get rid of it fully earlier.
