While most income generated by the University of Illinois System is tax-exempt, unrelated business income (UBI) is subject to tax assessments from both the IRS and the State of Illinois (as well as other states in certain scenarios).
See below for some common examples of activities that could potentially lead to unrelated business income tax (UBIT) assessments:
- Selling advertisements or non-qualified sponsorships to customers external to the system.
- Renting space and providing services to customers external to the system (such as space rentals and services sold to an external customer for their wedding).
- Renting equipment or personal property to customers external to the system.
- Selling tickets to commercial theater and entertainment events.
- Selling access to campus recreational facilities to unrelated individuals (such as alumni).
- Selling routine testing services.
For further details and examples of UBI activities and UBIT requirements, refer to Section 18.13 of the Business and Finance Policies and Procedures.
Contact
If you have any questions related to this topic, refer to our applicable subject matter experts by searching on “UBIT” in the search box of the Business & Finance Who to Ask list.
You can also contact the University of Illinois System’s tax experts within Treasury Operations, Tax Compliance and Analysis at (217) 244-8359.
