Saturday is first sales tax free day
Shoppers visiting Petersburg businesses this Saturday, May 5 will receive a 6-percent savings on their purchases. The city council granted a sales tax free day as requested by the Petersburg Chamber of Commerce on March 19.
Retail sales of both goods and services purchased and received on May 5, 2012 are exempt from the city sales tax.
According to information from the City of Petersburg the only taxable sales on that day will be for rentals greater than one day and sales made by the City. The city bed tax will remain at 4% on that day.
Many Petersburg businesses will be offering special promotions in conjunction with their annual Spring Market Event for 2012 on Saturday.
The sales tax free day is expected to spur business activity in town, while giving shoppers a day of additional savings. The Chamber of Commerce also hopes to draw out of town shoppers to the event, which has been advertised to outlying areas.
The chamber hopes the council will grant another sales tax free day in October when the state’s PFD checks are distributed.
The City and Borough of Wrangell has had two tax-free sales days per year for the past 4 years.
City manager Steve Giesbrecht estimated the city could lose $25,000 to $30,000 in sales tax revenue as a result of the single tax free day. The city will track the lost revenue on their sales tax report forms that businesses fill out and submit to the city each month.
Finance director Jody Tow told the council, “We’ll know exactly how much money that we’re losing,” after sales tax reports are submitted to the city.