Private Business Use

Buildings with tax-exempt debt - updated as of 6/30/2021

The University of Washington frequently finances facilities with proceeds of tax-exempt or other tax-advantaged bonds. For such facilities, Federal tax law requires the University to measure and report private business use. Generally, private business use of a financed facility is any use other than use by a state or a local governmental entity or use as a member of the general public. Private business use can arise from a lease, management contract, sponsored research agreement, or any other arrangement that gives a user special legal entitlements with respect to the use of the financed facility.

For more information, review our Guide to Identifying and Measuring Private Business Use in Tax-Exempt Bond-Financed Facilities, which provides an overview of the federal law and guidance regarding private business use. This guide helps the University track private business use in its financed facilities.  Note that the guide is not comprehensive, and the examples given are simplified for ease of presentation.

If you have additional questions about private business use, please contact:

Annette Sommer
Associate Vice President, Treasury

Shannon Thompson
Associate Treasurer, Debt Management & Analytics


Unrelated Business Tax Income (UBTI)

Additionally, activities that generate private business use often generate “unrelated business taxable income” (UBTI). UBTI occurs whenever a tax-exempt organization engages in a regularly carried on activity that constitutes a trade or business and which is unrelated to the organization’s mission. The University Tax Office has published guidance regarding UBTI. If you have additional questions about UBTI or concerns that UBTI may be generated, please contact:

UW Tax Office




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