If you plan to sell a product, you will need to obtain the state transaction privilege tax (TPT) license (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) from the Arizona Department of Revenue. For more information, see section titled, Selling a Product (includes service/repair businesses that provide parts/materials)
If you plan to incorporate second-hand items and/or antiques into your artwork, the city/town office (or county) in which you are based may have special licensing requirements in addition to any other city business licensing that may be required.
Certain city/town offices may exempt proceeds from sales of paintings, sculptures or similar works of fine art if such works of fine art are sold by the original artist. For the purposes of this subsection, fine art does not include an art creation such as jewelry, macrame, glasswork, pottery, woodwork, metalwork, furniture or clothing if the art creation has a dual purpose, both aesthetic and utilitarian, whether sold by the artist or by another person. (22)
Contact: Arizona Department of Revenue: TPT Exemptions, 602.255.3381