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Unrelated Business Activities (UBA) are revenue producing activities that:

1) are not directly related to accomplishing the University's educational and research missions,
2) are conducted for the primary purpose of earning a profit, and
3) compete with commercial businesses that provide similar services to the public.

Such activities may be subject to Unrelated Business Income Tax, which is imposed at the same tax rates applicable to "for-profit" corporations. Unrelated Business Activities generally involve the provision of services or products to non-University persons (i.e., other than University students, faculty and administrative personnel).

Every year, UC Merced Tax Services reports on Unrelated Business Activity (UBA) of the campus and off campus departmental units that may be subject to unrelated business activities. Some common example of Unrelated Business Activities include but not limited to activities which generate revenue from:

a) advertising in University publications and websites when the advertising does not have an educational purpose,
b) rental of facilities to non-University groups for events that are not considered educational,
c) the sale of memberships for the use of our recreational activities by alumni and other members of the public, and
d) routine laboratory services provided to non-University persons such as physicians' private practices.

To determine if an income producing activity is an Unrelated Business Activity, please review the Unrelated Business Income Review Guidelines and complete the UC Nonfinancial Questionnaire for review by Tax Services.

The business bulletin A-61, Procedures for Determining Unrelated Business Income and Expenses explains in detail how to determine if an activity is subject to Unrelated Business Income Tax (UBIT), when it is reportable and/or taxable.

To determine if an activity if reportable and/or taxable, contact the Tax Services Office for assistance:

Jennifer Di Salvo, Tax Analyst 
Tel: (209) 228-4367
Fax: (209) 228-4623