Kenai Peninsula voters suspend food tax seasonally
Published Thursday, October 9, 2008
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Stumble It!KENAI, Alaska -- Kenai Peninsula residents have voted themselves a seasonal tax break on groceries.
Voters Tuesday overwhelmingly approved a proposition eliminating borough sales taxes on non-prepared foods for nine months per year.
The "food-tax holiday ballot measure" was promoted by James Price, a Nikiski resident and head of Alaskans for Grocery Tax Relief Now. It earned more than 60 percent of the vote.
State law restricted the borough from actively campaigning against the proposition but borough administrators warned that the measure would cut revenue by $1.7 million or more annually.
The cities of Homer, Soldotna and Seldovia, which by law can only tax items also taxed by the borough, also stand to lose revenue.
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