42-11125. Exemption for inventory, materials and products Stocks of raw or unfinished materials, unassembled parts, work in progress or finished products that constitute the inventory of a retailer, wholesaler or manufacturer that is located in this state and that is principally engaged in reselling the materials, parts or products are exempt from taxation.
Arizona Legal Code
§ 42.11125
Source: https://www.azleg.gov/ars/42/11125.htm· Version 2026