New from ITEP: Gimmicky Sales Tax Holidays to Cost States & Localities $1.3 Billion This Year

New from ITEP: Gimmicky Sales Tax Holidays to Cost States & Localities $1.3 Billion This Year

Over the next month, 15 states will temporarily exempt a range of products from sales tax, joining one that held its sales tax holiday earlier this summer and two that do so a little later in the year. While these temporary suspensions may have some surface appeal, they have many significant downsides, as we explain in our new brief. The brief’s key findings: 18 states have sales tax holidays on the books in 2025. These suspensions will cost st…