What is the Business Improvement Area Levy?
As a business owner, you may have noticed that (among other taxes on your property tax bill) a tax called the Business Improvement Area (BIA) Levy. To understand the levy, you need to understand how a BIA comes about.
A Business Improvement Area (BIA) in New Brunswick is a geographically designated zone primarily consisting of non-residential properties, typically in what is considered the downtown area of a community. BIA’s were established in the early 80s to counter the then trend of consumers going only to malls, bypassing the downtown. For us, this area includes (describe the area). The concept of a BIA allows for a cooperative effort among business communities to fund and manage promotional activities, beautification efforts, and other initiatives aimed at revitalizing their district.
The process to establish a BIA starts with the local business community petitioning the municipal council to set up a BIA through a by-law. The Sussex DBA was established on December 9th, 1983! Once approved, a non-trading corporation, or BIA Corporation, is formed to represent the interests of businesses within the BIA. This corporation is essentially responsible for managing the BIA’s activities and budget, which is funded by a levy imposed on all non-residential properties within the area. The corporation is run by representatives of the businesses to ensure that the money is spent in a way that truly benefits them.
The BIA levy is an additional charge assessed to property owners within the BIA boundaries, over and above regular property taxes. Sussex businesses within the BIA, as of 2024, pay an additional $0.1800 per $100 of property assessment as part of the BIA levy. The funds collected from this levy are used by the BIA Corporation (the DBA) to undertake various projects such as promotional campaigns, street beautification, and improvement projects that benefit the business area and, by extension, the wider community. The DBA determines this amount each year based on needs and projects.
The success of a BIA largely depends on the active participation and support of its members—business and property owners within the designated area. They work together to enhance the attractiveness and competitiveness of their business district.
The Sussex Downtown Business Association has a vision of a vibrant and active downtown core with a welcoming, safe, and comfortable vibe where people gather to shop, work, and have fun! Your BIA levy helps to achieve that vision!
This self-help approach to economic development ensures that those who contribute to the BIA levy have a direct say in how the funds are utilized, making it a community-driven effort to improve their local business environment.