Story last updated at 3:12 p.m. Thursday, May 16, 2002

Sales tax initiative in wings
Kenai Peninsula Borough and other municipal leaders are already getting nervous about a tax initiative likely to be decided this fall that would eliminate the 2 percent sales tax on groceries.

Nikiski resident James Price has begun collecting signatures on a petition drive for the initiative. Borough Assemblyman Chris Moss told the Homer City Council on Monday that if the measure does get on the ballot, and passes, it would cost the borough alone $2 million.

"This has a serious impact" on borough finances, he said, trimming sales tax revenues by 11 percent. "It's a substantial amount."

Analysis by the borough finance department suggests Homer sales tax revenues would fall by $400,000, Moss said, which is the least of any city in the borough.

"I think it's going to take a concerted campaign to make sure this doesn't happen," he told the council.

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