The BID is funded principally from a levy chargeable on the Rateable Value (RV) of premises within the designated BID area.
BID levy rules
- The BID levy will be applied to all non-domestic hereditaments with a rateable value of £7,500 or more.
- As at January 2017 the levy rate to be paid will be 1.5% of the rateable value as at the selected “chargeable day” (1st April annually).
- The starting levy rate will 1.5% and will be inflated annually, commencing April 2018 by 3%, levy will be charged in advance in the following periods:
- The maximum BID levy payable from any one hereditament will capped at £5,000.
- All tenants will be liable for the levy irrespective of separate charges or any other contributions made as part of a their leases.
- The liability of the levy will fall on the eligible ratepayer. The owners of untenanted properties or hereditaments will be liable for the payment of the levy.
- There will be no VAT charged on the BID levy.
- Charitable organisations that are subject to Birmingham City Council mandatory relief on their business rates liability are exempt from the levy.
- The rating revaluation proposed for 2017 will be ignored for the purposes of calculating the levy. Instead the rateable value from that time will be defined as the rateable value assigned to a property or hereditament immediately prior to the adoption of the revised 2017 rateable values.
- The exception to this will be variations to rateable value due to any change of use or a physical change to a property or hereditament including inter alia: new construction, merger, subdivision, extension and refurbishment which result in the issue of a new entry or entries in the Ratings List at that time. The Ratings list (including the 2017 List) will be examined for new entries each year prior to the issue of levy invoices.
- If, during the term, the rateable value assigned to a property or hereditament falls below £7,500 for whatever reason (physical change, change of use or revaluation arising from the adoption of the 2017 Rating List, the hereditament will be exempt from the levy arising from the next chargeable period.
- If, during the term, the rateable value assigned to a property or hereditament which had been below £7,500 threshold is assigned a rateable value which is £7,500 or above the hereditament will be liable for levy.
- Birmingham City Council will be responsible for collection of the levy. Collection and enforcement arrangements will be similar to those for the collection and enforcement of non-domestic business rates with the BID Company responsible for any debt write off.
The BID will pursue other sources of funding and support both as cash and in-kind, including:
Birmingham City Council, which has confirmed that it will collect the BID levy at no charge to the BID Company and from other public bodies
Commercial sponsorships and income generation and voluntary contributions from businesses and organisations that are not covered by the BID levy arrangements
Realisation of developments of vacant land within the BID area through potential additional levy and other support