Assembly approves sales tax‑free days after Thanksgiving; memo estimates about $35,000 in foregone revenue

The Sitka City and Borough Assembly approved designated sales tax‑free days following Thanksgiving for 2025.

Motion and exclusions: a motion to authorize Friday, Nov. 28 and Saturday, Nov. 29, 2025 as sales tax‑free days passed on roll call. The resolution language recorded in the meeting states that the tax exemption will not apply to sales of fuel, alcoholic beverages or marijuana, and will not apply to any sale that is part of a continuing obligation of the buyer to pay the seller over time.

Fiscal impact and administration: city staff referenced a memo estimating the borough would forgo approximately $35,000 in sales tax revenue from those two days. The city will notify remote sellers per existing tax agreements so software vendors and remote sellers have notice of the exemption dates; staff noted the outcome may depend on vendors’ software capability to exempt specific days.

Recusal and vote: Deputy Mayor Pike recused from the item earlier in the meeting; the recorded roll call on the motion showed the measure passed 6–0. Assembly members discussed potential edge cases (for example, fabricated goods or work executed across multiple days) and noted the exemption has been a recurring local practice in prior years.

Why it matters: the tax‑free days are intended to encourage local shopping during the holiday period but reduce municipal tax receipts for the two specified days. The assembly discussed that local businesses often rely on increased holiday sales and that the exemption is a long‑standing local policy choice.

Next steps: staff will issue the required notices to remote sellers and local businesses as provided under the sales tax code and the city’s vendor agreements. The assembly did not change the scope of excluded items beyond those stated in the motion.