The City of Kodiak, Alaska has enacted a one-day annual sales tax holiday. Under the terms of the Kodiak City Code, the sales tax holiday will take place on the first Saturday in March each year. For 2020, the holiday occurred on March 7th.
The holiday applies to all sales and rentals of tangible personal property and services normally subject to the Kodiak sales tax except in the following two instances:
1. For rental contracts that have a duration in excess of one day, the tax should not be pro-rated or adjusted in any manner to account for the single-day sales tax holiday.
2. Sales, rentals and services made by the city of Kodiak are not subject to the special holiday rules.
Sellers retain the option of choosing whether or not to participate in the holiday. Should a seller choose to participate, eligible sales that occur during the holiday should be reported as exempt sales on the applicable sales tax return.