Coronavirus Response

  • Home
  • A-Z List
  • About
    • About the NCC
    • Connectional Table
    • Staff
  • Calendar
    • Events
    • Google Calendar
    • Past Events
  • Churches
  • Contact
    • Find Us
  • Districts
    • District Office
    • Beacon
    • Capital
    • Corridor
    • Fairway
    • Gateway
    • Harbor
    • Heritage
    • Sound
  • Employment
  • Search

NC Conference

Healthy Congregations and Effective Leaders in Every Place Making Disciples of Jesus Christ for the Transformation of the World

  • Discipleship
    Developing Disciples
    • Christian Formation
      • Children
      • Church & Society
      • College
      • Differently Abled Persons
      • Educational Ministries
      • Older Adults
      • Status & Role of Women
      • Young Adults
      • Youth
    • Church Revitalization
      • Coaching
      • Disciple Making Way
      • Evangelism
      • Grants
      • MissionInsite
      • Real Discipleship Survey
      • Shift
      • Spiritual Life
    • From the Bishop
      • Bishop’s Bookshelf
      • Bishop’s Sermons
      • Church Transformation
      • Conflict Transformation
      • Connections
      • Discipleship & Learning Plan
    • Multicultural
      • Asian
      • Hispanic/Latino
      • Native American
      • Strengthening the Black Church
    • Stewardship
      • Apportionments
      • District Remittances
      • Financial Discipleship
      • Grants
      • Insurance
      • Mission & Service
      • Pension
      • Treasurer Training
  • Leadership
    Strengthening Leaders
    • Bishop’s Office
      • Appointment Book
      • Bishop’s Sermons
      • Church Transformation
      • Conflict Transformation
      • Connections
      • Discipleship & Learning Plan
    • Ministerial Relations
      • Board of Ordained Ministry
      • Called to Ministry?
      • Extension Ministries
    • Board of Laity
      • Certified Lay Minister
      • Lay Servant Ministries
      • United Methodist Men
      • United Methodist Women
      • United Methodist Youth
    • New Faith Comm.
      • Called to Plant?
      • New Room Society
      • Our Communities
    • Conference Offices
      • Center for Leadership Excellence
      • Christian Formation
      • Communications
      • Conference Secretary
      • Connectional Ministries
      • Information Technology
      • Multicultural Ministries
      • Outreach Ministry
      • Treasurer’s Office
  • Service
    Ministering To The World
    • Local Outreach
      • Church Construction
      • Church Loans
      • Restorative Justice and Mercy
      • Disciple Bible Outreach
      • NCC UMVIM
      • Seed Funds
      • Mission Projects
        • Health Ministry
    • Global Outreach
      • Imagine No Malaria
      • Love for Liberia
      • Missionaries
      • Project AGAPE
      • Sierra Leone: Mission of Hope
      • ZOE
    • Disaster Ministries
      • Donate to Storm Response
      • Hurricane Florence
      • MERCI
      • Response Plan
      • Response Team
      • UMCOR Kits
    • Giving
      • Advance/Rainbow Covenant
      • Apportionments
      • Give to Storm Response
      • Mission & Service
      • The Gary Wayne Locklear Mission Endowment
      • New Room Society
      • Special Sundays
    • Ministry Partners
      • Camps & Retreats
      • Partners In Ministry
      • Robeson Co. Church & CC
      • UMF
  • Resources
    Supporting Ministry
    • Conferences
      • Annual Conference 2019
      • Annual Conference 2020
      • Charge Conference 2020
      • General Conference
      • Pilgrimage
      • SEJ Conference 2016
    • Media Center
      • Catalog
      • Labyrinth
      • Ministry Tools
      • Online Resources
      • Weekly Newsletter
    • Online Resources
      • Archives & History
      • Church Lookup
      • Online Data Collection
      • Online Learning
      • Pastor Lookup
      • Podcasts (NCCUMC.FM)
      • Ramus: Web Hosting
      • Video (Vimeo)
    • Publications
      • Advent 2020
      • Appointment Book
      • Bible Study
      • Conference Directory
      • Conference Journal
      • Every Day Grace
      • Lenten Reflections
      • Mission & Service
    • From UMC.org
      • Agencies
      • Communications
      • Discipleship
      • Finance & Administration
      • Global Ministries
      • Graphics Library
      • Relief
      • Status & Role of Women
  • Treasurer’s Office
    • Contact Us
  • Committees
    • Meeting Materials
      • Board of Pension
      • Board of Trustees
      • Council on Finance and Administration
      • Equitable Compensation Commission
      • Insurance Committee
      • Joint Committee on Clergy Medical Leave
      • Nominations Committee
      • Connectional Table
    • Nominations
  • Downloads
    • Church Remittances
    • Compensation
    • EFT Forms
    • Insurance
    • Moving Expense
    • Pension
    • Statistical Tables
    • Tax Law
    • Travel
  • Insurance
    • Amazing Pace Program
      • Success Stories
    • Rates
    • Retiree Health
    • Wellness Programs
  • Pension
    • Transition Fund
    • Pension FAQ
  • Reports
    • District Remittances
    • Historical District Remittances
  • Resources
    • Church Audit Referrals
      • Gary Lanvermeier, CPA
      • Langdon & Company, LLP
      • Sandy Newell, CPA, Partner – BRC
      • Thomas, Judy and Tucker, P.A.
    • Clergy Tax Referrals
      • Ada Douglas: Ada’s Bookkeeping & Tax Service
      • Barton W. Baldwin: Baldwin & Hodge, CPAs
      • Cox and Hamilton, CPA, PA
      • Crawford Knott: Holden Moss, CPAs
      • Dianne Uzzell: Nunn, Brashear & Company, P.A.
      • Frank A. Elmore, CPA, P.A.
      • Fred Roberson: Roberson CPA Firm, PLLC
      • Henry White: Stancil & Company, CPAs
      • Joan Lucas: JL Accounting Services
      • Lawrence A. Hamilton: Hughes Pittman & Gupton, LLP
      • Mark Friesen: Clergy Financial Resources
      • Patricia Rhodes: Stout, Stuart, McGowen and King LLP
      • Susan K. Foster: Clergy Tax Professionals
    • Discussion Group
    • FAQ
      • All FAQ
      • Apportionments
      • Benefits
      • Church Finances
      • Church Payments
      • General
      • Online Data Collection System
      • Taxes
    • Online Data Collection System
    • Training Materials
  • Stewardship
    • Christian Giving in Today’s Economy
    • Environmental Stewardship Basics
    • Faithful Giving Stewardship Services
  • Financial Wellness
    • Budgeting
    • Credit Management
    • Debt Management
    • Estate Planning
    • Funding College
    • Insurance
    • Investing
    • Retirement Planning
    • Saving
    • Financial Wellness Resources

Can my church receive a refund of sales tax paid when it is part of a reimbursement to someone for making a purchase on behalf of the church?

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.

Back to FAQ Search

Post Categories

GCFA Links

  • GCFA
  • Legal Manual
  • Tax Packet
  • UM Group Ruling
  • UMC Giving

Other Links

  • Center for Health Newsletters
  • Gen Bd of Discipleship (GBOD)
  • Gen Bd of Global Ministries (GBGM)
  • Internal Revenue Service
  • Online Data Collection System (OLDCS)
  • PeopleFacts – Background Checks
  • United Methodist Insurance
  • Vanco Payment Solutions: Church Marketing Center

NC Conference of The United Methodist Church · 700 Waterfield Ridge Place · Garner, NC 27529
Phone: 919.779.6115 · Toll-free: 800.849.4433 · Fax: 919.773.2308

Copyright © 2021 · Privacy Policy · Powered by WordPress · Site Admin

  • Español
  • 한국어