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Sales taxes
As I understand it, at least here in CT and Mass sales tax is on goods sold at retail and labor is not taxable.
It is all in how you price your work. If you pay sales tax on the the materials you use, tax was already paid on these so you do not collect sales tax again on them. If you used a tax ID when you bought them and did not pay sales tax you would then have to collect sales tax on the retail sale of those materials.
Since portrait painting is a service no sales tax should be due on that part of the sale that was labor.
Now this is how it should work... for this is how it works for all other businesses. But artists often get different treatment in tax laws than other businesses.
I know granite fabricators who sell granite counter tops price tops by the sq. foot at an installed price of $.01/sq. ft for material cost.
The install price is often a range between $59.00 and $80.00/sq. ft. depending of the type of granite. Of course they pay a different price for each type of granite but on a 50 sq. ft. top that costs $80.00/sq. ft. the amount of the sale would be $4000.50 but sales tax is due on only $.50.
This is completely legal for them so why the law would be any different for artists I don't know.
Of course I am not a lawyer and I do not even play one on TV (or the internet). I am just passing on what little I know about how it works for other service industries.
It is always best to check with a lawyer in your own state on this.
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