Homer debates year-round sales tax on food

A City of Homer plan to boost revenue by making the summer-only food sales tax a year-round affair drew  mostly negative reaction at a hearing this week. The Homer Tribune reports the tax would help maintain city services and put a little in the city savings account.

The council accepted two ordinances to be voted on Dec. 10. One proposed by Councilman Bryan Zak would outright reinstall the city’s 4.5 percent taxes on all nonprepared foods between Oct. 1 and May 31. 

Another, proposed by Councilman David Lewis, would leave the tax holiday in place on meat, fish, poultry, dairy, grains and all other foods except for so-called junk food. These include cookies, soda pop, chips, ice cream and frozen TV dinners, which Lewis argues are not “non-prepared” foods.

Lewis took the hot seat, however, in a Monday afternoon work session when it came to logistical questions from his colleagues. How, for example, would grocery stores separate out the non-taxable from the taxable?

The proposed tax would cost the average family $7.44 a week, reports the Homer News. Read more at the Homer Tribune  and the Homer News.