FY2025 projected revenue for the General Fund is $17,027,108, up $1,980,534 or 9% from the FY2024 budget of $15,502,240. The single largest source of the Town’s revenue comes from local sales tax at 60%. State sales tax is the second largest at 19% followed by wholesale drink tax at 9%. The Town estimates and budgets the revenues for each fiscal year very conservatively. This is due to the primary source of revenue being local sales tax and state sales tax. 

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Local option sales tax is the largest revenue stream and is a good indicator of economic growth within the Town. Sales tax is levied on the final sale of an item and remitted to the state by the retail merchants. Cities and counties may levy up to 2.75% local option sales tax in addition to the state sales tax of 7%. The Town receives 50% of 2.25% in local option sales tax. The remaining fifty percent goes to the Knox County schools.

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Cities receive a share of the state sales tax directly from the state every month based on population. It is also the largest of the state shared revenues, accounting for more than half of the population-based state shared revenues.