When you attend craft shows for a living full or part time, you must collect, report and pay sales tax. However, if you only sell one or two items a year, you may be exempt from sales tax by your state. For instance, yard sales and community bake sales may sometimes be exempt, but only if you only have one sale within a 12 month period. The only safe way to be sure is to check with your local taxing authority for details. Remember, if you run a business, you MUST pay your taxes or your business will ultimately fail. You may also face some pretty stiff penalties for avoiding taxes.