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Blount Countians voted strongly against a half-cent sales tax increase Tuesday.

The countywide referendum was defeated by nearly 13,000 votes with 30,871 people voting against it and 18,124 people supporting it, according to unofficial returns.

The referendum’s final fate, however, is still up in the air as the governing bodies of Maryville and Alcoa — which also approved placing the item on the Nov. 4 ballot — could still send a request to the Blount County Election Commission to put it on the next available election’s ballot. A special election would likely have to be called if this occurred.

“We wanted to give the people a choice. We didn’t make the case for the sales tax to keep from raising property taxes, and it was the worst possible time for a sales tax increase,” said former Maryville Mayor Steve West, the treasurer of Blount Countians for Educational Excellence. “I — and others — felt it was a way to keep the burden solely off the backs of property owners.”

“I didn’t want this to be for the cities only,” added West. “Both the cities and the county have needs not only for growth, but to stay at the same level,” he noted.

Grassroots groups shut down

The grassroots groups are now formally disbanded.

Under state law, cities and counties can levy up to a 2.75 percent local option sales tax. The local option in Blount County is 2.25 percent. The referendum would have increased the sales tax rate to 2.75 percent and used the proceeds for education.
Grassroots group Blount Countians for Educational Excellence had estimated the added tax would raise between $7.7 million annually with 2 percent increases each year.

The first half of the tax increase would have been distributed based on student enrollment and the second half would have been based on where the tax is collected.

Blount Countians for Educational Excellence had estimated the Blount County school system would receive $2,449,271 based on student attendance and $509,606 based on the point of collection.

Maryville would have received $1,059,952 and $1,614,649; and Alcoa would have received $337,934 and $1,935,527, respectively.