ANCHORAGE (AP) The village of King Cove has voted to raise its local sales tax.
Voters in the Aleut fishing village at the tip of the Alaska Peninsula decided 47 to 34 Tuesday that the tax should be increased to 4 percent from 3 percent.
King Cove depends on salmon fishing for much of its economic base. That industry has been stagnant, and this year the city faced a $200,000 deficit.
The sales tax increase will cover about half of that amount. The city added a new fisheries business impact tax earlier this year that will bring in the remaining $100,000 from the Peter Pan seafood processing plant in the community.
The sales tax is the second increase in four years. The community raised the sales tax to 3 cents from 2 cents on the dollar in 1999.
The city also collects a 2 percent fish tax.
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