LENOIR CITY, Tenn. (WVLT) – Residents in Lenoir City could soon be paying more in taxes.
Monday night, City Council passed the first reading of an ordinance to possibly increase the city sales tax.
Currently, the tax is 2%. The ordinance is looking to raise this to 2.75%.
City council said the money from this increase would go support the Housing and Community Preservation Fund through the Loudon County Habitat for Humanity and the Lenoir City Parks and Recreation Department.
Lenoir City Mayor Tony Aikens said residents would have the final say on the tax increase.
“Lenoir City government is giving the citizens the choice to pass this,” said Aikens. “We’re telling them what the need is, we’re telling them the need for housing for our veterans for our seniors, and what better than the Habitat for Humanity to lead that.”
Tony Gibbons, the executive director of Habitat for Humanity, spoke during the meeting and is advocating for the sales tax increase.
He said it can help people that are considered low-income individuals in Lenoir City.
“They’re part of our community; they’re part of the fabric of not just today but yesterday and tomorrow,” Gibbons said. “I know that sounds lofty and picturesque, but they’re the people of the community to let’s invest in them.”
The ordinance still needs to pass a second reading before it heads to the ballot to be voted on in the November 2026 election.
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