Sitka, Alaska (KINY) - The Sitka Borough Assembly agreed to join the Alaska Remote Sellers Sales Tax Commission.
This will provide the borough with tax revenue for online sales in Sitka.
Assemblymember Thor Christianson said this will support local businesses, "Number one this supports our local vendor. Everybody is competing now with internet vendors. They have been competing with one arm tied behind their back."
Christianson said if they didn't join the group they would lose revenue from Amazon and other vendors.
"If we don't do this what we're saying is we'd rather have you shop at Amazon than in town," he added.
Finance Director Jay Sweeney said Sitka could lose between $200,000 and $500,000 if they didn't join the group.
The Assembly also abated penalties and interest for the payment of first-quarter sales taxes until June 30th.
The City receives about $25,000 over the three months from penalties for late payment.
They will require the business to write the city a letter to explain why they need the abatement.
The business must make full payment by June 30th.
Assemblymember Valorie Nelson said this will help local business, "I know what is going on with small business. If people don't have the money right now they can simply write a letter showing this is the situation."
She said it will show small businesses that the Sitka Borough is trying to assist them during the pandemic.