A citizens initiative that would exempt Petersburg seniors 70 and older from the borough’s 6% sales tax will be on the Oct. 6 municipal election ballot in that community.

Last fall, Petersburg voters chose to eliminate the senior sales tax exemption that applied to all qualified residents over 65 and replace it with an income-based senior sales tax exemption. Residents will now be asked to restore the sales tax exemption for all seniors, regardless of income, but with the minimum age increased to 70 years old.

The tax-free benefit would continue for seniors age 65 to 70 who meet the low-income limits.

The assembly last month took up the measure after a citizens petition drive collected more than 350 signatures by registered voters to force the question onto the ballot.

If voters approve the initiative, the new ordinance would take effect Nov. 1.

To qualify under the provision, an applicant would have to be 70 or older, maintain a permanent residence in Petersburg, have lived in the borough for at least one year immediately preceding application and intend to remain, have been physically present in the borough at least 185 days in the previous 12 months, and have met the qualifications for the Alaska Permanent Fund dividend for the preceding calendar year.

The ordinance sets a one-time, nonrefundable $50 application fee. Once approved, the card is valid for the cardholder’s lifetime, with no annual reapplication, though the finance director may request additional documentation to verify continued eligibility. A senior who stops meeting the requirements must surrender the card.

The assembly could make small changes to the program, such as to the application date or the fee.

The measure would not change the existing low-income sales tax exemption for seniors at least age 65, which has been in effect for less than a year and is tied to eligibility for the state Senior Benefits Payment Program.

A full year of the income-based tax exemption for lower-income seniors, approved in a 633-624 vote last October, will cost about $400,000 a year in lost sales tax revenue, according to borough officials.

There was no estimate for the lost-revenue cost of an exemption for all seniors 70 and older.