FY25 Tax Exempt Bonds - Private Use Questionnaire

PURPOSE:

Under federal tax law applicable to tax-exempt bonds, only a small portion of facilities or equipment financed or refinanced with the proceeds of the bonds may be used, leased, managed or operated by a non-qualified user. This questionnaire is intended to help with the collection and review of information in order to determine compliance with the private business use limits. The private business use limits apply for the entire term of the bonds (including any refunding bonds) and violation of private business use limits could result in the loss of the tax-exempt status of the bonds.


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INSTRUCTIONS:

Information on private business use of tax-exempt bond financed facilities and equipment can be located at either:


Tax Exempt Bond Compliance Policy

Private Use Business Primer


The questions set forth in this questionnaire relate only to buildings or equipment financed or refinanced (in whole or in part) with the proceeds of tax-exempt bonds. This questionnaire is required to be completed by each University of Georgia department. The Accounting Department will work with senior fiscal managers in each school/college/unit to evaluate activities identified and determine what/ if any additional steps are necessary.

Contact Information

Building Information

Private Use Questions

Example: Administrative offices, instructional classrooms, research labs, student dorms, etc.

2) Are there any leases/subleases/licenses/use permits to third parties of space in the facility?*

Third parties would include individuals or companies that are external to UGA. This would not include other UGA Departments. Leasing/renting to external parties does create private business use of the building.

Examples: "Cabin rental to various parties for 1 week or 2 week duration", or "Office space (1,000 sq ft) rented to ABC Company for 12 months at $750 month."


Please attach copy of rental contract (at the bottom of the form). If multiple contracts for similar rents, please include a copy of your standard contract.

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

3) Are there any vendor contracts for operations within the facility, including any concessions and gift shops?*

Normally these types of contracts would be handled by Auxiliary Services. Experiment Stations could have these as well.

Example: 12 month contract with Yummy Burgers for 500 sq ft of space, for food service area, in Building #1234.


Please attach copy of contract (at the bottom of this form).

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

4) Are there any management or service contracts (for example: dining services contracts) involving control or operations of any substantial or distinct portion of the facility, but do not include contracts for services that are incidental to the operation of the facility (i.e. janitorial services, office equipment repair, etc.)?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

5) If scientific research is performed in the facility, are there any research projects sponsored by external entities, including but not limited to those sponsored by Federal agencies (NIH, NSF, etc.), non-profit foundations, and for profit industry?*


This question is for Sponsored Research ONLY (Funds 20000 and 213xx). Do NOT include projects sponsored by a state or local government (Class code 62xxx and 63xxx).


Definitions:

  • Qualified User - state or local governmental unit and 501©(3) charitable entities. UGA is a qualified user.
  • Sponsor - any party other than the qualified user that is sponsoring the research. A corporate, industry, or federal government participant is likely to be a sponsor.
  • Basic Research - any original investigation for the advancement of scientific knowledge not having a specific commercial objective. For example, product testing supporting the trade or business of a specific nongovernmental person is not considered basic research.
5(a) Is there Private (Industry)/Corporate Sponsored Project activity conducted in the Tax Exempt Building?*

Safe Harbor Test 1:

5(a)(1)(1) Does UGA permit any license or other use of resulting technology by the sponsor on the same terms use by any unrelated, non-sponsoring party (that is, the sponsor must pay a competitive price for its use?*
5(a)(1)(2) Is the price, paid by the sponsor, for any license or other use of resulting technology determined at the time the license or other resulting technology is available for use?*

NOTE: UGA need not permit persons other than the sponsor to use any license or other resulting technology, but the price paid by the sponsor must be no less than the price that would be paid by any nonsponsoring party for the same rights.

Safe Harbor Test 2:

5(a)(2)(1) Does the sponsor agree to fund basic research performed by UGA?*
5(a)(2)(2) Does UGA determine the research to be performed and the manner in which it is performed?*
5(a)(2)(3) Does UGA retain exclusive title to any patent or other product incidentally resulting from the basic research?*
5(a)(2)(4) Is any party other than UGA entitled to receive no more than a nonexclusive, royalty-free license to use the product of any of that research?*
5(a) Is there Federally Sponsored activity conducted in the Tax Exempt Building?*

Safe Harbor Test 3:

5(a)(3)(1) Does UGA determine the research to be performed and the manner in which it is performed?*
5(a)(3)(2) Does UGA retain exclusive title to any patent or other product incidentally resulting from the basic research?*
5(a)(3)(3) Is any party other than UGA entitled to receive no more than a nonexclusive, royalty-free license to use the product of any of that research?*

Provide Chartstring detail in the following format: Fund/Program/Dept/Class/OperUnit/Project/PCBus/Activity/Chartfield1


Please separate any grants with "NO" answers in a separate list or by some specific notation in listing provided.


If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

6) Is there any research equipment located at the facility that has been provided by an "Industry/Corporate Sponsor" on loan or provided exclusively for purposes of a research project funded by the sponsor?*

Example: ABC Company provided equipment (identify specific equipment) to be used exclusively on a research project funded by the ABC Company.

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

7) Are there any service or recharge centers located in the facility?*

Service or recharge centers are sometimes also referred to as “core labs” or “core facilities”. Please refer to our Service Center Policy for any questions.

7(a) Is the service/recharge center operated by UGA or is the service activity operated by external entity personnel?*
7(c) Does the contract call for compensation to be based, in whole or in part, on a share of "net profits" from the operation of the facility?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

8) Are there any arrangements with any third party including the federal government or any agency thereof involving the use of the facility or the sales of goods or provision of services arising from activities within the facility?*

Do NOT include Sponsored Research in this section. Sponsored Research should be included in #5 above.

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

9) Are there any joint purchasing or shared service arrangements or agreements relating to the facility with a third party?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

10) Are there any arrangements relating to facilities, services, professional office space, land or equipment used by or rented to board members, faculty or administrative staff for private uses?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

11) Is there leasing of athletic or residential facilities for summer use or use by private entities in their trades or businesses, including summer camps to the extent the camp participants are assigned there?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

12) Are there leasing of facilities for conferences, or the renting of dormitory or other rooms to the public?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

13) Are there any naming rights associated with any area of the facility?*

If you prefer to provide an attachment with this information, please link it at the bottom of this form and notate which question your chartstring relates to. In the box below, type “See Attachment”.

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