Peninsula food tax initiative on ballot

Posted: Friday, August 22, 2008

KENAI - Voters in the Kenai Peninsula Borough are being asked to decide whether to exempt certain foods from the borough sales tax for part of each year.

The question will be put on the Oct. 7 borough ballot.

The measure stems from an initiative petition sponsored by a grassroots group called Alaskans for Grocery Tax Relief Now.

The initiative calls for exempting foods already exempted by the borough code when purchased with food stamps.

The exemption would apply to all consumers from Sept. 1 to May 31 of each year, and would take effect Jan. 1.

Officials say that could cost the borough about $1.8 million annually. Sales tax revenues go toward borough schools.

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