UBIT (Unrelated Business Income)

A tax-exempt organization such as San José State University is subject to tax on unrelated business income (UBI), which is income from any trade or business that is not substantially related to its tax exempt mission. The Accounting Services department prepares a UBIT packet to report all identified UBIT activities on campus annually and submits it to the Chancellor office for filing the Exempt Organization Business Income Tax Return (IRS Form 990-T).