Correct.. and it's in that specific circumstance: where you are licensed, and for whatever reason the retailer charged you sales tax anyway on an item for resal

Correct.. and it's in that specific circumstance: where you are licensed, and for whatever reason the retailer charged you sales tax anyway on an item for resale... then you can file with the state to receive that money back. My point was that there's no reason any retailer or manufacturer would pay sales tax on the inputs for their goods.