Before a BIA can be created, the property owners in the area must indicate whether they favour or oppose its establishment. This can be accomplished in one of two ways:
- Petition for service: Generally initiated by local business owners, the petition must include information about the proposed business improvement area including boundaries and estimated cost. The petition must be signed by the owners of at least 50 percent of the parcels that would be subject to the local area tax and those persons must be the owners of parcels that in total represent at least 50 percent of the assessed value of land and improvements that would be subject to the local service tax.
- Council initiative - subject to petition against: A municipal council can also initiate the establishment of a business improvement area by providing an opportunity for a petition against the proposed service. Council must give notice of a petition against in accordance with section 94 of the Community Charter and by mailing notice to all the owners of parcels that would be subject to the local service tax. This is the format approved by the City of North Vancouver Council for the Central Lonsdale BIA bylaw process.
The notice must include information about the proposed business improvement area including boundaries and estimated costs. Unless Council receives a sufficient petition against within 30 days it can proceed. The threshold for sufficient petition against (50 percent of parcels and 50 percent of assessed value as described above) is the same as for a petition for service.
Learn more about the requirements for petitions for service and council initiatives via the Province of BC’s website: Local Area Services
BIAs are primarily funded through a special tax levy on identified Class 5 (Light Industry) and Class 6 properties (Business and other classification under the BC Assessment Act) within its defined boundaries. The property value tax is calculated per $1,000 of assessed land and improvement values. It is collected by the local government and granted to the BIA to fund its own programs.
If approved, the property value tax appears as a “BIA levy” on the annual tax bill for commercial property owners.