Why I’m Not Supporting the Sales Tax Referendum

Over the past few weeks, I’ve had a lot of conversations with voters, small business owners, community leaders, and neighbors about the sales tax referendum on the November 4 ballot.

I’ve listened carefully, done my homework, and spent time thinking through both the short- and long-term implications.

At the end of the day, I’ve not been convinced to vote for the sales tax increase referendum.

That’s not a decision I take lightly.

I know there are good intentions behind the proposal, and I understand the desire to accelerate much-needed infrastructure and public safety improvements.

But when I look closely at the details, several concerns stand out that I believe deserve more public discussion.

No Built-In Sunset Clause

One of my biggest concerns is that this referendum doesn’t have a built-in sunset clause, which means there’s no clear end date for this half-cent tax increase.

In practical terms, that means we’re creating a permanent new revenue stream based on a temporary five-year project list.

Once those projects are completed, the new funds don’t go away; they just roll into the city’s general fund with no dedicated purpose.

If we’re asking voters to pay more at the register, I believe it should be for a clearly defined time period, tied to specific deliverables.

Without a sunset clause, we lose a powerful tool: the ability to go back to voters in the future and say, “We kept our promise, now here’s what else we could do together.”

Countywide Conflicts & Unintended Consequences

There’s also a real risk that this move could backfire, both politically and financially.

Knox County could pursue its own sales tax referendum as early as next year.

If that happens, state law would require the city and county to split the sales tax revenue equally.

That means the City of Knoxville would suddenly receive only half of what we expected, doubling the estimated timelines for the proposed projects.

I worry that this could lead to delayed improvements, public frustration, and a loss of trust in how we handle long-term planning.

Grocery Tax Exemption Could Be Undone

One of the more overlooked aspects of the referendum is the promise that groceries will remain exempt from this tax increase. That’s an important detail, especially considering how food prices have soared.

However, that exemption is only valid if Knoxville’s sales tax rate stays higher than Knox County’s.

If the county were to pass its own increase next year (something very possible), Knoxville would lose its ability to exempt groceries, because state law allows only the higher-rate jurisdiction to offer that exemption.

That’s not speculation, that’s a legal reality that hasn’t been adequately addressed.

So even though we’re being told groceries won’t be taxed, that could change down the line without any additional vote from the public. That’s a real concern.

A Tough Time for Working Families

Finally, and maybe most importantly, this just isn’t the right moment for a regressive tax hike.

We’re in a tight economy.

Groceries cost more, utility bills are up, and wages aren’t keeping pace for too many of our neighbors.

While a half-cent might not sound like much on paper, sales taxes hit lower- and middle-income families the hardest, especially those who rent and don’t benefit from rising home values.

We talk a lot about affordability in this city. I believe we need to live that out in our fiscal decisions as a city government.

For me, that means being cautious about tax changes that don’t have full public buy-in or protections for those least able to absorb them.

What Would It Take to Earn My Support?

To be clear, I’m not opposed to strategic investments in infrastructure, housing, public safety, or parks.

I absolutely want Knoxville to have better roads, safer intersections, and stronger neighborhoods.

But for me to support a future sales tax measure, it would need to include:

• A sunset clause, so voters know exactly how long the tax will last

• Clear, transparent budgeting tied directly to public-facing project timelines

• Deliverables that are guaranteed by charter or ordinance

• A real community engagement process to build public trust from the beginning

This referendum doesn’t hit those marks, and without those protections, I can’t ask voters to say yes.

Let’s Keep the Conversation Going

I know some people will agree with me. Others won’t.

That’s okay.

My goal isn’t to tell you how to vote, it’s to share openly how I came to my decision and why I think it matters.

What we do with our city’s budget says a lot about who we are and what we value.

That conversation deserves to be honest, informed, and ongoing.

I’m always open to hearing more perspectives, and if you have questions or ideas, I hope you’ll reach out.

- Frank Ramey, Candidate for Knoxville City Council, District 3