Shoppers will have another holiday from Petersburg sales tax next month. Petersburg’s borough assembly Monday approved a sales tax free day for May 3rd.
Local law allows for up to two tax free days a year and typically the borough has held tax holidays in spring and fall. Shop owner Savanne Guthrie represented the Chamber of Commerce’s retail committee which requested the tax free day.“The reason we pick May 3rd is that there are funds flowing again in our community after having crabbing and herring pounding going on,” Guthrie explained. “It is before our tourism hits which is about Mayfest, kicks that off. So it’s a time when we can encourage our community members to get out and shop. They hopefully have a little extra money to do so.”
Other local merchants wrote to the borough assembly about the importance of the tax holidays for their businesses.
Assembly member Nancy Strand wondered if the borough could afford a tax free day. “I see all the letters of support and they say it’s a great way for merchants to offer a deal. They could offer a six percent sale anytime. And I question whether it should always be on the back of the borough that the sale happens,” Strand said.
Most of the year, the borough collects a six percent sales tax on purchases of goods and some services. Finance director Jody Tow noted the borough is ahead of its budgeted amount for sales tax revenue this year by 250-thousand dollars. A tax holiday last October cost the municipal government over 12-thousand dollars in lost revenue.
Guthrie told the assembly that October tax free day was the highest single day of sales for her business in five years. “And I can give you a couple of reasons for that if you’d like,” Guthrie said. “It was the morning of the breast cancer awareness walk. People were already out and about. Number two, (Permanent Fund Dividend checks) were in. In my shop, in addition to the six percent, I offered 20 percent. So there are reasons, as retailers we’re not just trying to ride along on the back of the borough. We’re trying to take this opportunity that we’ve been given and make the most of it.”
The borough assembly voted 5-0 to approve another tax free day. Mayor Mark Jensen and assembly member John Havrilek were not at the meeting. We’ll have more coverage of Monday’s assembly meeting coming up this week on local news.