Unrelated Business Income Tax (UBIT) Mid-Year Reminder
Financial Services is reviewing current fiscal year unrelated business income (UBI) activity. University revenue generating activity may be subject to Unrelated Business Income Tax (UBIT).
Tax Services
Unrelated Business Income Tax (UBIT) Reminder
Financial Services is reviewing current fiscal year unrelated business income (UBI) activity. The University of Arizona is exempt from federal income tax as an integral part of the State of Arizona when revenue is generated from activities that are substantially related to the University’s exempt purposes which include research and discovery, teaching and learning, and outreach and public service.
New Tax Guidance for Software Used in Research and Development
Financial Services would like to share tax savings news for University departments that qualify to make tax exempt purchases of machinery or equipment used in research and development (R&D) as that term is defined by the State. The statutes (A.R.S. § 42-5061(B)(14) and A.R.S. § 42-5159(B)(14)) read as follows:
Updated Independent Contractor Form (ICON)
Financial Services has updated the Independent Contractor Form in support of Policy 9.12 Independent Contractor Services. The form can now be completed, signed, and submitted electronically. It should be completed prior to any services being performed.
USB 402, 502 Remodel Update
As previously announced in late September, Financial Services is remodeling our space in the University Services Building (USB) rooms 402 and 502.
We are pleased to inform Campus that Phase 1 of the remodel (room 402) is complete. Teams and services have returned to normal for units previously located in this office. Many of our employees are in a new location in the room, so if you are visiting be sure to stop at the front desk for directions.
USB 402, 502 Remodel Begins October 1
Financial Services is remodeling our space in the University Service Building (USB) rooms 402 and 502 starting October 1 through early December. In order to maintain continued service to our customers, we have identified temporary work locations for our employees and customer service teams.
Effect of the Increase to the City of Tucson Sales Tax Rate
In November 2017, Tucson resident voters approved a tenth of a percent increase to the City of Tucson sales tax rate.
Changes to Taxability of Employee Relocation Expenses
Changes included in the “Tax Cuts and Jobs Act” (Public Law PL 115-97), require employee relocation expenses to be taxable to recipients.
City of Tucson Sales Tax Rate Increase Effective July 1, 2017
On May 16, 2017, Tucson resident voters approved a 5-year half-cent increase to the City of Tucson sales tax rate. Effective July 1, 2017, the rate will rise from 2.0% to 2.5%, increasing the total retail sales tax rate in Tucson, AZ from 8.1% to 8.6%. This change has no impact on Arizona use tax assessment, which remains at 5.6%. FSO has evaluated UAccess Financials and current tax calculations within requisitions will accommodate this change so there is limited impact on users.