Form E-585 "Nonprofit and Governmental Entity Claim for Refund State, County, and Transit Sales and Use Taxes" - North Carolina

This version of the form is not currently in use and is provided for reference only.
Download this version of Form E-585 for the current year.

What Is Form E-585?

Form E-585, Nonprofit and Governmental Entity Claim for Refund State, County, and Transit Sales and Use Taxes, is a legal document used to request semiannual refunds of sales and use taxes paid on direct purchases and leases of tangible property and services from the Department of Revenue. It can be completed by nonprofit and other qualified entities and governmental entities listed in the North Carolina General Statutes, Chapter 105, Taxation, § 105-164.14.

This form was released by the North Carolina Department of Revenue. The latest version of the form was issued on February 1, 2018, with all previous editions obsolete. A fillable NC Form E-585 can be downloaded through the link below.

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How to Prepare NC DOR E-585?

Form E-585 instructions are as follows:

  1. Enter the legal name of the entity, its mailing address and contact information of the individual to be contacted regarding the claim;
  2. Write down the account ID. It can be either the account ID number assigned by the Department of Revenue or the Federal Employer Identification Number (FEIN) issued by the Internal Revenue Service;
  3. Indicate the beginning and ending dates of the period covered by the refund claim;
  4. State whether you complete this form for a nonprofit or other qualified entity or governmental entity. A nonprofit entity is also required to provide the National Taxonomy of Exempt Entities (NTEE) number;
  5. Indicate the name of the taxing county in which the entity paid county and transit tax. If you have to identify more than one county, list them in Form E-536R, Schedule of County Sales and Use Taxes for Claims for Refund you attach to Form E-585;
  6. Record the total purchases of tangible personal property and services on which you have paid State sales or use tax directly to retailers. If you paid food, county, and transit sales or use tax, enter this information in the right column;
  7. Enter the total State sales and use tax paid directly and indirectly to retailers and record food, county, and transit sales and use tax separately;
  8. Record information about the use tax paid directly to the Department of Revenue;
  9. Add the State tax and enter its total amount. Add the food, county, and transit tax and indicate its total in the appropriate column;
  10. Indicate the total refund requested by adding the State and county tax;
  11. Enter the county tax paid at the applicable rate;
  12. Sign the form certifying the claim is complete and accurate. Write down the actual date, your title, and add the telephone number.

When you file a claim for the refund of taxes paid during the first six months of the calendar year, the E-585 due date is October 15 of this year. Claims for tax refunds paid during the last six months of the year are to be filed by April 15 of the following year.

Send the form to the NC Department of Revenue, PO Box 25000, Raleigh, NC 27640-0001.

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Download Form E-585 "Nonprofit and Governmental Entity Claim for Refund State, County, and Transit Sales and Use Taxes" - North Carolina

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E-585
PRINT
CLEAR
Nonprofit and Governmental Entity Claim for Refund
Web-Fill
State, County, and Transit Sales and Use Taxes
2-18
Complete all of the information in this section.
Legal Name (First 32 Characters) (USE CAPITAL LETTERS FOR YOUR NAME AND ADDRESS)
Account ID
Mailing Address
Federal Employer ID Number
City
State
Zip Code
County
Period Beginning (MM-DD-YY)
Name of Person We Should Contact if We Have Questions About This Claim
Contact Telephone
Period Ending (MM-DD-YY)
Fill in the circle that describes your organization.
National Taxonomy of Exempt Entities Number
Nonprofit or other qualified entity as defined in N.C. Gen. Stat. § 105-164.14(b) (Semiannually)
(Nonprofit Entity Only)
Governmental entity as defined in N.C. Gen. Stat. § 105-164.14(c) (Annually)
1.
Name of Taxing County
(If more than one county, see instructions on page 2 and attach Form E-536R.)
2.
Total Qualifying Purchases of Tangible Personal
State
Food, County & Transit
Property and Services for Use on Which North Carolina
State or Food, County & Transit Sales or Use Tax Has
Been Paid Directly to Retailers (Do not include tax paid,
purchases for resale, or items described in box below.)
Tax paid on any of the following items are nonrefundable:
Electricity, piped natural gas, telecommunications and ancillary services, video programming, prepaid meal plans; the purchase,
lease, or rental of motor vehicles; local occupancy or local prepared food and beverage taxes; scrap tire disposal or white goods
disposal taxes; reimbursements for travel expenses; alcoholic beverages; digital property
3.
Amount of Sales and Use Tax Paid Directly
to Retailers on Qualifying Purchases
4.
Amount of Sales and Use Tax Paid Indirectly
on Qualifying Purchases
5.
Amount of Use Tax Paid Directly to the Department
on Qualifying Purchases (Do not include tax collected
and remitted on sales made by the entity.)
6.
Total Tax (Add Lines 3, 4, and 5. Food, County & Transit
tax must be identified by rate on Line 8.) (For nonprofit
entity only; annual cap applies, see General Instructions.)
$
7.
Total Refund Requested
(Add State and Food, County & Transit tax on Line 6.)
8. Allocation of Food, County & Transit Tax on Line 6 (Enter the Food, County & Transit tax paid
at each applicable rate. If you paid more than one county’s tax, see the instructions on page 2 and
attach Form E-536R.)
Transit 0.50% Tax
Food 2.00% Tax
County 2.00% Tax
County 2.25% Tax
Durham, Mecklenburg, Orange, Wake
Signature:
Date:
I certify that, to the best of my knowledge, this claim is accurate and complete.
Title:
Telephone:
For Departmental Use Only
Food Tax
County 2.00% Tax
County 2.25% Tax
Transit Tax
,
,
.
,
,
.
,
,
.
,
,
.
State Tax
Total Tax
,
,
.
,
,
.
Refund Approved:
As Filed
As Corrected
By:
Date:
MAIL TO: NC Department of Revenue, P.O. Box 25000, Raleigh, NC 27640-0001
Page 2,
General Instructions
E-585, Web-Fill, 2-18
Complete this Web-Fill form in its entirety on your computer, print the completed form, and mail to the Department. An Account ID is required to process
the claim.
This form is to be filed by the following entities as specified:
- Nonprofit or other qualified entities as permitted in N.C. Gen. Stat. § 105-164.14(b): A claim for refund of taxes paid during the first six months of
the calendar year is due to be filed by October 15 of that year. A claim for refund of taxes paid during the last six months of the calendar year is due to
be filed by April 15 of the following year. Enter the National Taxonomy of Exempt Entities (“NTEE”) classification code for the entity. The NTEE code
system is used by the Internal Revenue Service and the National Center for Charitable Statistics to classify nonprofit organizations. Organizations
properly classified in any of the following major group areas of the NTEE do not qualify for a refund: Community Improvement and Capacity Building,
Public and Societal Benefit, and Mutual and Membership Benefit.
Effective July 1, 2014, for a nonprofit entity, the State sales and use tax aggregate (total for both six month periods) refund amount may not exceed
$31,700,000 for the State’s fiscal year. Effective July 1, 2014, for a nonprofit entity, the Food, County & Transit tax aggregate (total for both six month
periods) refund amount may not exceed $13,300,000 for the State’s fiscal year.
A hospital not listed in N.C. Gen. Stat. § 105-164.14(b) is only allowed a semiannual refund of sales and use taxes paid by it on over-the-counter drugs
purchased for use in carrying out its work.
- Governmental entities as permitted in N.C. Gen. Stat. § 105-164.14(c): Claims for refund are due on a fiscal year basis within six months of the
close of the fiscal year of the claimant. The State sales and use tax is not subject to refund for local school administrative units and joint agencies
created by interlocal agreement among local school administrative units pursuant to N.C. Gen. Stat. § 160A-462. Only the Food, County, and Transit
sales and use tax are subject to refund.
Records must be maintained on a county by county basis to identify qualifying purchases of tangible personal property and services, county & transit tax
paid directly to retailers on qualifying purchases for use as shown on sales receipts and invoices, county & transit tax paid indirectly on qualifying purchases
of building materials, supplies, fixtures, and equipment as shown on certified statements, and county & transit tax paid directly to the Department of Revenue.
Records must be maintained for qualifying direct purchases and qualifying indirect purchases as follows:
- Qualifying direct purchases - Adequate documentation for tax paid directly to the vendor is an invoice or copy of an invoice that identifies the item
purchased, the date of the purchase, the cost of the item, and the amount of sales or use tax paid. Reimbursements for travel expenses to an authorized
person of the entity are not considered to be a direct purchase; therefore, the sales or use tax paid on such are not refundable.
- Qualifying indirect purchases - Adequate documentation for sales or use tax paid on qualifying indirect purchases is a certified statement from the
real property contractor or other person that purchased the items. The statement must indicate the date of purchase, the item purchased, the vendor
from whom it was purchased, the invoice or order reference number of the purchase, the purchase price of the item, and the amount of sales and use
tax paid on the qualifying indirect purchase. Only sales and use taxes paid on building materials, supplies, fixtures, and equipment that become part
of or annexed to a building or structure that is owned or leased by or is being erected, altered, or repaired for use by the nonprofit entity for carrying
on its nonprofit activities or by the governmental entity are sales and use tax paid on qualifying indirect purchases eligible for refund.
In general, the statute of limitations for obtaining a refund is the later of three years after the due date of the return or two years after payment of the tax.
For a claim for refund filed within the statute of limitations, the Department must take one of the following actions within six months after the date the
claim for refund is filed: (1) send the taxpayer a refund of the amount shown due on the claim for refund; (2) adjust the amount of the refund shown due
and send the taxpayer a refund of the adjusted amount; (3) deny the refund and send the taxpayer a notice of proposed denial; or (4) request additional
information from the taxpayer. If the Department does not take one of the actions within six months, the inaction is considered a proposed denial of the
requested refund. A taxpayer who objects to a proposed denial of a refund may request a Departmental review of the proposed action by filing a Form
NC-242, Objection and Request for Departmental Review within the time provided in N.C. Gen. Stat. § 105-241.11. If the Department selects a claim
for refund for examination, the taxpayer has the same rights that the taxpayer would have during an examination of a return by the Department. If the
Department determines that a claim for refund was not filed within the statute of limitations, the refund request will be denied and the Department will
issue a notice of proposed denial of refund.
For a full explanation of the Departmental review process, refer to the North Carolina Taxpayers’ Bill of Rights found at www.ncdor.gov or the provisions
of N.C. Gen. Stat. § 105-241.11.
Line by Line Instructions
If you have questions about how to complete this form, more detailed instructions can be found on our website at www.ncdor.gov or call the
Department toll-free at 1-877-252-3052 (toll-free).
Line 1 -
If all taxes were paid in only one county, enter the name of that county. If you made purchases and paid county and transit tax in more than one
county, do not list a county on Line 1.
For Lines 2 through 6, local school administrative units and associated joint agencies should only complete the Food, County & Transit column.
Line 2 -
Enter in the State column the total amount of qualifying purchases of tangible personal property and services for use on which State sales or use
tax was paid to retailers. The taxable purchase price of a modular home, manufactured home, boat, or aircraft is included in the State column
only. Enter in the Food, County & Transit column the total amount of qualifying purchases of tangible personal property and services for use on
which food, county and transit sales or use tax was paid to retailers.
For Lines 3 through 6, State tax must be entered in the State column and food, county and transit tax must be entered in the Food, County &
Transit column.
Line 3 -
Enter the amount of sales and use tax paid directly to retailers on qualifying purchases for use, as shown on sales receipts or invoices. Do not
include tax paid on nonrefundable purchases as described in the box on the front of claim form.
Line 4 -
Enter the total amount of sales and use tax paid indirectly on qualifying purchases of building materials, supplies, fixtures, and equipment as
shown on certified statements from real property contractors or other persons.
Line 5 -
Enter the total amount of use tax paid to the Department by the entity on its sales and use tax returns for qualifying purchases. Do not include
tax collected and paid on taxable sales made by your entity.
Line 6 -
Add the amounts of tax by column on Lines 3, 4, and 5 and enter the sum.
Line 7 -
Add the State and Food, County & Transit taxes on Line 6 and enter the sum. This is the total amount of refund requested for the period.
Line 8 -
Allocate the amount of county and transit taxes included on Line 6 in the Food, County & Transit Tax column to the applicable rate. If county
or transit tax was paid for more than one county, complete Form E-536R, Schedule of County Sales and Use Taxes for Claims for Refund, to
identify the applicable rates and individual counties to which tax was paid for the period. The total of all entries on Form E-536R must equal the
food, county and transit tax shown on Line 6.
For nonprofit entity only: If the aggregate annual entries of food, county, and transit tax on Form E-536R (total for both six month periods) exceeds
$13,300,000 for the State’s fiscal year, then each entry of the food, county, and transit tax (total for both six month periods) on Form E-536R must
be proportionally reduced to the aggregate annual refund cap of $13,300,000 for the State’s fiscal year.
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