Yes, if the reimbursement is considered a “direct purchase” and is not for travel expenses, the tax can be claimed as part of the refund. Taxes paid via reimbursements for travel expenses cannot be claimed as part of your refund. This is reinforced in the instructions for line 3 of the E-585 refund form. Below is an excerpt of the general statute which describes how taxes paid through reimbursement can be considered a direct purchase by the church. Click here to read the whole general statute.
(Effective July 1, 2014)
A nonprofit entity is allowed a semiannual refund of sales and use taxes paid by it under this Article on direct purchases of tangible personal property and services, other than electricity, telecommunications service, and ancillary service, for use in carrying on the work of the nonprofit entity. Sales and use tax liability indirectly incurred by a nonprofit entity through reimbursement to an authorized person of the entity for the purchase of tangible personal property and services, other than electricity, telecommunications service, and ancillary service, for use in carrying on the work of the nonprofit entity is considered a direct purchase by the entity. Sales and use tax liability indirectly incurred by a nonprofit entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the nonprofit entity and is being erected, altered, or repaired for use by the nonprofit entity for carrying on its nonprofit activities is considered a sales or use tax liability incurred on direct purchases by the nonprofit entity.