It’s a little bit confusing to live in Knox County. It’s confusing because you can live in the Town of Farragut or the City of Knoxville, which each have their own governments, but we all live in Knox County, which also has its own government.
All Knox County residents pay a county property tax rate of $1.5540 per $100 assessed value, including those who live in Farragut and Knoxville. Knoxville residents pay an additional property tax of $2.1556 per $100 assessed value, and for that they receive services like a police department, a fire department and garbage, recycling and yard waste pickup. Outside of Knoxville, county residents rely on the Knox County Sheriff’s Office and subscribe to fire protection and trash pickup.
(If you wonder what Knox County does with property tax proceeds, approximately two-thirds of Knox County’s annual budget supports public schools.)
If you live in Farragut, your property taxes go to Knox County. The Town of Farragut does not receive any property tax revenue. Even without a property tax, Farragut provides numerous services to its residents that make it an exceptional place to live. Here are just a few:
- Continuously improved roads
- High-quality, well-maintained parks and greenways
- A community center that offers free or inexpensive classes, programs and events. It houses the Farragut Parks & Rec Department, which manages the parks (including field and court use, the McFee Park splashpad, and large community events like the Independence Day Parade and Light the Park)
- An accessible community development department that keeps development standards high
- Assistance to Farragut businesses through a business liaison, as well as publicity provided by the Visit Farragut program
- A friendly and helpful staff that is available to answer your questions every business day
How is the Town of Farragut able to offer these services with no municipal property tax? The key is sales tax revenue, which makes up approximately 60% of the Town’s total revenue. Another 19% comes from Farragut’s portion of the State of Tennessee sales tax. In other words, sales tax keeps Farragut afloat.
That’s why the Town strives to support Farragut businesses and encourages residents to spend their dollars within Town limits. It’s not that we don’t care about businesses located outside of Farragut; we just don’t receive tax revenues from those businesses. Keeping sales tax revenue high keeps Farragut residents from having to pay a municipal property tax on top of Knox County’s property tax.
If you would like to support Farragut by shopping within the Town, explore the shopping and dining directories at VisitFarragut.org. Keeping sales tax dollars in Farragut is the best way to ensure the financial viability of the Town.