City of Knoxville - Demographics

DEMOGRAPHICS

Location & Climate

Founded in 1791 where the French Broad and Holston Rivers converge to form the Tennessee River, Knoxville is the largest city in East Tennessee and ranks third largest in the state. It is located in a broad valley between the Cumberland Mountains to the northwest and the Great Smoky Mountains to the southeast. These two mountain ranges help provide a moderate climate, with an annual average temperature of 58 degrees. There are 104 square miles in the City of Knoxville and 526 square miles in all of Knox County. Downtown Knoxville is 936 feet above sea level.

Livability

The Knoxville area is frequently cited in national surveys as a quality place in which to live. The University of Tennessee calls Knoxville home, making an array of educational and cultural opportunities available to area residents. Affordable housing, health care costs below the national average, a low crime rate, and a pleasant climate with lakes and mountains nearby are factors which make Knoxville an attractive place to settle.

Recent honors for Knoxville, Tennessee:

#1 Best Place to Live for cities under 1 million population. (354 Metros Ranked) - Source: Places Rated Almanac Millenium Edition

Knoxville ranked 3rd on the Best Cities for Relocating Families List - Source: Worldwide ERC and Primacy Relocation, 2004.

Knoxville ranked 13th for "Best Places for Business and Careers" - Source: Forbes magazine 2004

Knoxville is "Top Mid-Market" with populations between 250,00 and 750,000 - Source: Southern Business and Development magazine June 2003

Tennessee ranked #7 for the best states to have a small business - Source: MSN Business

Knoxville ranked 14th in "Top Logistic Cities in the Southeast" - Source: Expansion Management magazine June 2003

Income

Location	Per Capita Income Average
Tennessee	$27,611
Knoxville MSA	$28,466
Knox County	$30,327
Anderson County	$27,100
Blount County	$25,353
Loudon County	$26,212
Sevier County	$24,603
Union County	$18,096
* MSA refers to Anderson, Blount, Knox, Loudon, Sevier and Union Counties. Source: Bureau of Economic Analysis

Population

Location	Population
Knoxville	173,661 (2002)
Knox County	392,995 (2003)
MSA	712,366 (2003)
* MSA refers to Anderson, Blount, Knox, Loudon, Sevier and Union Counties. Source: US Census Bureau

Taxes

Tennessee is a business-friendly state. Corporations, as well as citizens, benefit from the Tennessee tax structure. It is profitable to do business in Tennessee and cost effective to live here. Various tax credits are applicable, further lowering tax liability of corporations within the state. Tennessee is one of the few remaining state with no personal income tax.

Under Tennessee Constitutional law, property taxes are assessed as follows:

Residential property is assessed at 25% of appraised value
Commercial/industrial property is assessed at 40% of appraised value

As of June, 2001, the property tax rate for Knox County residents is $3.32 per $100 assessed value, and the tax rate within the City of Knoxville is $3.04 per $100 assessed value. Residents of the city are subject to both city and county property taxes.

Business taxes, payable in both the city and county, vary from 1/30 of 1% to ^1/8 of 1% of taxable gross receipts, of which the state receives 15%. The minimum business tax is $20. Most professional offices and manufacturers are exempt. More information can be obtained from the city at 865-215-2083 and the county at 865-215-2392.

The state sales tax is 7%. The local sales tax is 2.25%, bringing the total sales tax in Knox County to 9.25%.

Employment

In 2000, nonagricultural employment in the Knoxville MSA* was distributed as follows:

Industry	Employees
Construction	17,200
Finance, Insurance, Real Estate	15,100
Government	55,200
Manufacturing, total	47,700
Manufacturing - Durable Goods	32,000
Manufacturing - Nondurable Goods	15,700
Services	96,400
Trade	91,000
Transportation, Communications, Public Utilities	15,600
TOTAL	338,200
* MSA refers to Anderson, Blount, Knox, Loudon, Sevier and Union Counties

The Knoxville economy has no one dominant employment sector. The diversified labor force is credited as the primary factor for the area's low unemployment rate. Total employment in June 2004 was 384,600.

Labor Force

The Knoxville MSA total labor force exceeded 380,000, as of March 2004. The average MSA unemployment rate in March 2004 was 3.9%. The rate for Knox County was 2.6%. Both are lower than the statewide average rate of 5.2% and the nationwide average rate of 6.0% for this time period.

Commerce and Industry

Manufacturing forms located in the Knoxville MSA produce everything from shoulder pads for professional football teams to medical devices, electronic components, chemicals, manufactured housing, apparel and automobile parts. These firms employ from as few as five to as many as 12,000 employees. Industrial investment in the Knoxville MSA in 2000 totaled $509 million, creating 2,662 additional jobs.

Four regional shopping malls, six major chain department stores, and a number of shopping centers and factory outlets meet the retail needs of the Knoxville metropolitan area. MSA retail sales totaled $9.4 billion in 1999 and ranked 75th out of 323 MSAs in total retail sales nationwide.

Links of Interest:
US Census Bureau
Metropolitan Planning Commission
Population Reference Bureau
TN Dept. of Labor and Workforce Development
UT Center for Business and Economic Research