KNOXVILLE, Tenn. — Knoxville leaders will soon consider increasing the amount that hotels and motels pay in taxes. That additional revenue could be spent on tourism-related expenses.
A proposal on the agenda for Knoxville City Council's Nov. 12 meeting would increase the tax rate from 3% to 4%, resulting in around $2.2 million more in city revenue. Currently, money made from hotel and motel taxes can only be used to pay down debt from the Knoxville Civic Auditorium and Convention Center.
If the proposal passes, the city will also be able to use the money on tourism-related initiatives. Those projects could include repairs to the Knoxville Civic Auditorium and Convention Center, World's Fair Park and other tourism-related facilities.
The tax is primarily paid by Knoxville tourists, and if it passes the proposal would take effect on Jan. 1, 2025. The city council would need to pass it on first and second readings before the tax rate would increase.