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Tax-Exempt Debt

Northrop Auditorium on U of M campus

The University issues debt to fund various capital projects, including land and building purchases. The issuance process and post-issuance compliance are the responsibility of Debt Management. The University Tax Management Office (TMO) works with the Debt Manager and several other departments on campus to manage the tax aspects of a Tax-Exempt (TE) debt issuance. As needed, the University TMO will perform reviews of private use and arbitrage rebate relating to TE debt issuances.

The University has Debt Management Guidelines that ensure each debt transaction conforms with all laws and regulations. Capital Planning & Project Management provides a portfolio of projects in design, projects in construction, and completed projects.

Private Business Use Working Tips

  • Private business use (PBU) must be tracked by the TMO on an annual basis.
  • PBU occurs when an outside non-governmental entity uses the TE funded space.
  • The following activities will need to be analyzed by the TMO to determine if private use exists:
    • Rental of debt-financed space to outside third parties.
    • Naming rights for non-individuals.
    • Research agreements with outside organizations
    • Collaboration agreements with third parties
    • Management contracts

 

  • PBU Maps - The TMO has prepared maps of each of the campuses identifying the capacity for private business use within each building.  Departments should refer to them prior to entering into any private business use arrangements.  The following is information to help interpret the color coding (key) used in the maps.
    • Buildings shaded blue do not have any TE debt on them and have no limits at this time for private use. 
    • Buildings shaded orange also have no TE debt and have capacity for additional private uses but HEAPR funds should not be used for any building improvements without first working with the TMO.
    • Buildings shaded green have TE debt but have capacity for additional private uses.
    • Buildings shaded yellow have TE debt and the TMO should be contacted prior to entering any additional private use agreements.
    • Buildings shaded red have TE debt and the TMO should be contacted prior to entering any additional private use agreements. In addition, HEAPR funds should not be used for any building improvements without first working with the TMO.
    • Buildings shaded gray have not yet been analyzed by TMO.  Departments should contact TMO before entering into any private business use arrangements or before requesting HEAPR funds to be used for building improvements.
    • Click on each map below to access the pdf version for each campus:

Minneapolis PBU:

TCCampusMap

 

St. Paul PBU:

StPaulMap

 

Duluth PBU:

 

Morris/Crookston PBU:

MorrisCrookston

Tax Management Office Guidelines

TMOG #1 - University Tax-Exempt Bonds and Private Use Guidelines

TMOG #4 - Research and Private Business Use

TMOG #9 - Fifty Day Rule

TMOG #10 - Qualified Improvement Exception

TMOG #12 - Tax-Exempt Bond Expenditure Allocation Rules

TMOG #13 - Arbitrage Rebate Compliance

TMOG #14 - Private Business Use

TMOG #15 - Form Series 8038 and Capital Leases

About the Tax Management Office

Leadership

Kelly Farmer

Director


Parent Unit

University Finance

Financial Units Org Chart (pdf)

 

Department Contact Information

University Tax Management

2221 University Ave SE, Suite 100

Minneapolis, MN 55414

P: 612-624-1053, F: 612-626-1886

taxhelp@umn.edu

Directions & Parking Information


Tax Managment Staff

TMO Organizational Chart (pdf)