Tax & Accounting Blog

Petersburg, Alaska Has Its’ First Tax Free Day

Indirect Tax, ONESOURCE, Sales and Use Tax May 8, 2012

In a bill passed by the city council last October, the city of Petersburg allows for up to two Tax Free Days a year, chosen by the Chamber of Commerce, which gives shoppers a 6 percent savings on their purchases for a one day period.  The first ever Tax Free Day took place on May 5th in 2012, and the Chamber hopes for another one in October of this year.  The City and Borough of Wrangell has been offering the same exemption for the last four years.  The idea is to lure shoppers and spur business, but some fear that the city could lose up to $30,000 in revenue from just this one day.