The City of St. John’s is combining the Business Improvement Area Levy with the commercial mil rate.

Prior to 2013, Downtown St. John’s collected a 10 per cent levy placed on the business occupancy tax of businesses operating within the Downtown Business Improvement Area.

The funds from the levy were used to help fund the organization’s program’s and initiatives to enhance the downtown core. However, in 2013 the city combined the business occupancy tax with the realty tax, necessitating a change in how the levy was collected.

Research conducted to determine the best way for Downtown St. John’s to proceed found that other municipalities in Atlantic Canada that were faced with similar situations combined the BIA Levy with the commercial mil rate.

Downtown St. John’s notes this does not mean a tax increase for businesses, but rather an administrative change in how the levy is collected.

The levy of 0.8 mils on commercial properties within the Downtown Business Improvement Area will take effect in January 2020.