States’ Sales Tax Holidays Expand, Forcing Retailers to Scramble

State sales tax holidays are expanding, encompassing not just the familiar back-to-school purchases, but entirely new categories of products that will require more merchants to adjust how they collect taxes.

Nineteen states this year are holding sales tax holidays, with some expanding beyond backpacks and notebooks to include firearms, home appliances, power tools, and even pool toys in the list of eligible goods. As a result, many retailers now find themselves facing new layers of compliance for policies that critics have long argued are insufficient in providing relief for those who need it the most, while costing states a projected ...