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Technical and administrative issues

Defining the rate payers in the BID area

Section 46 of the Local Government Act 2003 (LGA 2003) provides that BID arrangements must specify the description of non-domestic ratepayers in the business improvement district who are liable for the BID levy for a chargeable period.

A person is to be liable for the BID levy for a chargeable period if he falls within that description at any time within that period.

The BID area, and the list of streets contained within the area, are described by the Notice of BID ballot as detailed in Appendix A.

Subject to exemptions (see below) any person, registered company or charity/non profit making organisation who is the occupier/leaseholder or where the property is empty and a lease does not exist, the owner, of the non-domestic rated property within the BID area is liable for the BID levy.

Liability: change of occupier during the life of the BID

The amount of a person's liability for the BID levy is to be determined by these arrangements.

In the case of the Plymouth BID, liability is calculated on a daily rate basis, so an occupier's liability depends on the period they are deemed to be in occupation of the premises.

Methods of billing

Those responsible for the BID levy will be sent a separate account for the amount payable, as well as a bill for the non-domestic rates payable in respect of the premises.

Calculation of the BID levy

The amount of the BID levy, and how it is calculated is to be set out in these arrangements. The details of the way in which it is calculated for the Plymouth BID is set out in the BID business plan.

In essence the calculation is based on a percentage of the rateable value of a hereditament as it appears in the Valuation Officer Agency 2000 non-domestic rating list as at 1 June 2009*.

Where the Valuation Officer Agency makes a new hereditament or following a split/merger or reconstruction of an existing hereditament between 2 June 2009 and 31 March 2010 inclusive, the rateable value of that new heraditament as it first *appears in the 2000 non domestic rating list will be used in the calculation of the BID levy.

Where the Valuation Officer Agency makes a new hereditament or following a split/merger or reconstruction of an existing hereditament on or after 1 April 2010, the rateable value of that new heraditament as it first* appears in the 2009 non domestic rating list will be used in the calculation of the BID levy.

The percentage of the BID levy is 1.162 per cent of that rateable value (except in respect of covered shopping centres where occupiers already pay a service charge for example Armada Centre, where any relevent hereditament will be charged at 0.5 per cent of the rateable value).

Where the Valuation Officer deletes a hereditament form the non-domestic rating list the BID levy will be calculated up until that date.

The relationship between the non-domestic rates and the BID levy

The billing authority for non-domestic rates is similarly separated. A person is liable for both non-domestic rates and the BID levy, but each is paid separately and, where appropriate, payment will be subject to enforcement on a separate basis.

Exemptions from the BID levy

The extent of any exemptions from the BID levy is to be set out in these arrangements. Again, those details are contained within the BID business plan.

Essentially, the following properties are exempt from the BID levy under these arrangements:

• Offices (but not offices used for employment, recruitment and training agencies/businesses, or where the offices form part of a bank/building society or other financial institution)
• Commercial car parking spaces (where rated separately)
• Concessions, including on street traders, fairs, craft markets, fairground rides, kiosks and outdoor commercial/charitable promotions or events
• Telephone kiosks
• Advertising drums
• Registered companies in administrative receivership
• Companies that are in liquidation or those sole/joint ratepayers who are bankrupt will also be exempt up to the date of bankruptcy

Reliefs

Relief from the BID levy will not be granted to any occupier of a hereditament including any who are a registered charity or non profit making organisation.

Enforcement procedures

Enforcement procedures for non-payment of the BID levy will face the same procedures as currently apply for non-payment of domestic rates. Any debt would be pursued through the Magistrates Court with the option of pursuing it through the County Court. Costs will be sought in such applications.

Alterations

The BID Company's principal objective is the delivery of all the projects outlined in the BID Business Plan.

Under the terms of the BID contract with the Council, the BID Company will agree with the Council which of the projects are to be delivered each year, and when they are to be delivered within that year. Their delivery will depend largely upon the cash flow made available to the Company; depending, for example, when money is received through the BID levy.

Whilst every effort will be made by the Company to deliver all the proposals, some of them may be delayed because of cash flow and unforeseen events.

Subject to this proviso, however, the BID Company will not change the geographical size of the BID area, or increase the BID levy, or make more persons liable to pay BID levy than are already liable under these arrangements, without first consulting on the alteration and then submitting it to a ballot.

Where consultation and an alteration ballot are necessary, the same consultation ballot procedures as were applied to the current arrangements will be followed; ie the BID Company will follow the statutory requirements of consultation and balloting.

*If the Valuation Office subsequently increases or reduces the rateable value from that originally determined for the calculation of the BID levy, the revised rateable value will not affect that calculation.

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