Tie the pickling spices in a square of cheesecloth, creating a spice bag. Set aside.
In a large stainless steel saucepan, combine tomatoes, 2 cups of vinegar, and chili peppers. Bring to a boil over medium high heat, stirring constantly. Reduce heat and boil gently until vegetables are soft, about 15 minutes.
Working in batches, transfer mixture to a food processor and puree until smooth.
Return mixture to saucepan. Add sugar, salt, and spice bag. Bring to a boil, stirring frequently, until mixture begins to thicken. Add remaining vinegar and boil gently, stirring frequently, until mixture thickens, about 45 minutes. Discard spice bag.
Prepare a boiling water canner, jars, and lids.
Ladle hot sauce into hot jars, leaving 1/2 inch of headspace. Remove air bubbles, wipe rim, and center lid on jar. Screw band down until finger tip tight.
Place jars in canner covering with water. Bring to a boil, cover, and process for 15 minutes. Remove canner lid. Wait 5 minutes, then remove jars.
Cool for 24 hours. Store in a cool place for 1 year.