Can a department reimburse employees for taxes on business-related purchases paid by the employee with personal funds?

Yes, if charged to the appropriate project and is approved by the department or college.

It is up to the college or department to decide whether to allow reimbursements for paid sales tax. Colleges and departments should review their methods for payments to suppliers, including employee reimbursements, to ensure that direct payments (payment by NCSU check or P-Card) are made to suppliers as much as possible.