Do you apply for a refund of sales taxes?

[Marc D.]

I'm paying sales taxes for my supplies when I flip a house. The IRS considers my house as inventory since I am a dealer. If this is inventory, I shouldn't have to pay state sales taxes for the supplies -- but I don't charge my end-buyers sales taxes, so I will never collect nor owe sales taxes. So do I sign up with the state as a merchant and submit refund returns for all of the sales taxes I put into my properties? Or something different?

I am in Denver CO, if it matters.

[J Scott]

The reason for a sales tax exemption is that you're reselling and your end buyer is paying the tax (that you are obligated to collect and pay to the state).   When you resell a house, I assume you're not collecting and paying sales tax.  Given that, the no reason for you to be entitled to the exemption in the first place.  Someone is obligated to pay the sales tax.