Private Business Use

The University of Vermont is subject to post-issuance bond compliance requirements as a result of its outstanding tax-exempt bond issues. One such requirement is Private Business Use (PBU) compliance. Facilities financed with tax-exempt financing must be monitored on a consistent and regular basis throughout the life of the financing to ensure compliance with the limitations on tax-exempt private business use. For each tax-exempt debt issuance, the University is required to record, update and retain private business use activity documentation to substantiate compliance.

In brief, private business use means:

Use (directly or indirectly)
Of the “facilities” (facilities financed by, or the proceeds of, a tax-exempt financing)
In a “trade or business” (any activity carried on by a person other than a natural person)
Carried on by a “nonqualified user.” (Qualified users are limited to state or local government units. Note: the federal government and its agencies are NOT considered qualified users.)

Annual Questionnaire

To ensure compliance with University policy, all administrators of units that benefit from tax-exempt bond proceeds and bond-financed property are required to complete an annual questionnaire and biennial training.