How does a church become exempt from state sales tax?
Churches are automatically exempt from state sales tax by being a 501(c)(3) organization. However, in North Carolina, 501(c)(3) organizations must pay sales tax as they go and then request refund for sales tax from the state of North Carolina on a semi-annual basis. Request for refund is done by filing Form E-585 with the NC Department of Revenue. Supporting documentation must be retained and the county where the point of sale occurred must be identified.
