It doesnt have to be in the same form. It just needs to be an input into the product that will eventually be sold to a consumer, where the sales tax will be cha

It doesnt have to be in the same form. It just needs to be an input into the product that will eventually be sold to a consumer, where the sales tax will be charged. For a really clear example of this, many states have a sales tax exception for equipment that will manufacture goods for resale. So in that case, the equipment never even made it into the final product, except by touching the item that was sold. Equipment has a lifetime, and it's consumed by producing items for resale... so it's exempt. If I purchase raw material to turn into a final product, that raw material is sales tax exempt.