I must be clarified! Is there or is there not 1.5x crop factor for DX lenses on DX bodies?

I have a Nikon D7000, and was wondering if crop factor applies to DX lenses as well. As in, if I was using the Nikon DX Nikkor AF-S 35MM F1.8 on my D7000, would I have to apply crop factor to get the film equivalent, or is 35mm already the film equivalent?

Yes, the 1.5x crop factor applies to DX lenses as well. The 35mm DX still approximates a 52.5mm perspective/angle of view on your D7000.It applies to all lenses.

Your example of 35mm… The 35mm is a wide angle on a FX or full frame camera body like the D700 and the 1.5 comes into play with the DX camera body such as my D90 where it is now a "normal" lens
such as the 50mm would be on the FX body.

The crop factor comes from the camera, not from the lens.

The only meaning of DX in the name of a lens is that it won't be able to fill the whole frame in case of a full frame or film camera. That's all - that designation has no other meaning.

FX and DX lenses of the same focal length, when mounted on the same camera, will give you the same angle of view. The focal lengths are directly comparable if they are mounted on the same camera.

The crop factor has to do with the smaller sensor, nothing else.

If you use a DX lens on a full frame camera, there will be no crop or magnification factor. There would be fall off around the edges because the DX lenses produce a smaller image circle which will not cover an entire 35mm sensor.

The focal length on the lens is what it is. You would have to multiply it by the sensor's crop factor to determine the 35mm equivalent.