Business Occupancy
What is business occupancy assessment?
According to the Assessment Act, every person occupying or using any commercial property shall be assessed for a sum to be called business occupancy assessment. There are some exceptions which are outlined in the Assessment Act.
When commencing a business you must provide the following information to the PVSC:
- the type and name of the business
- mailing address
- location of the business
- square footage occupied
- rent paid (where applicable)
- start date
The assessed business occupancy owner is required to notify their local PVSC office within 7 days of any opening and within 30 days of a closing or change in space occupied.
The Provincial Government has amended the Municipal Government Act, (Bill No. 191), to allow for the phasing out of business occupancy tax over several years. There are 3 categories of business occupancy assessments: 25 %, 50%, and 75%. The category your business is in determines when you will stop receiving business occupancy assessments.
The 25% category included hotels, motels, restaurants, campgrounds, service stations and motor vehicle dealerships and was eliminated in 2006.
The 75% category includes financial institutions such as banks, trust companies, insurance companies, credit unions and loan or investment companies and will be phased out in 2013.
The 50% category includes all other businesses and is being phased out over five years with elimination in 2010.
When will business occupancy assessments and the Business Occupancy Assessment Tax cease?
The legislation defines different schedules for the phase out of business occupancy assessments and the Business Occupancy Assessment Tax, depending on the type of business. The following table gives the schedule of the phase-out by category of business.
Business Occupancy Assessment Category Types of Business The business occupancy assessment and BOAT phase-out schedule
Business Occupancy
Assessment Category |
Types of Business |
The business
occupancy assessment and BOAT phase-out schedule |
25 % Category |
hotels, motels, restaurants, campgrounds, service stations and motor vehicle dealerships | Eliminated in 2006 |
75 % Category |
financial institutions such as banks, trust companies, insurance companies, credit unions, loan or investment companies | To be eliminated in 2013 |
50 % Category |
all other businesses (ex.retail outlets, professional offices and services, manufacturing, home-based business, and spaces that are licensed under the Liquor Control Act as a cabaret, tavern, beverage room or lounge) | 2005 50% |
Who receives a Business Occupancy Assessment?
Any tenant or property owner who occupies or uses commercial space in a category not yet eliminated receives a Business Occupancy Assessment.
What do I do if I'm starting a new business?
You are required to contact your local PVSC office within one week of opening your business.
What about changes to my business?
If you make changes to your business such as name, address, change in space occupied or ownership, your local PVSC office will require notification within 30 days.
I’m planning on vacating my business premises. What now?
Let us know by contacting your local PVSC office within 30 days of vacating your business premises. That way, your Business Occupancy Tax will be adjusted by your municipality.
For example, a business that vacates or decreases space on May 1st and notifies the local PVSC office before June 1st is entitled to an adjustment of their tax bill by their municipality.
Who determines the Business Occupancy Tax?
Municipalities use assessment information to help them determine business occupancy taxes.
Can I appeal my Business Occupancy Assessment?
Yes. If you are in the 75 % category, you will receive written notice of your Business Occupancy Assessment in January or February of each year and you may appeal it within 21 days after the notice has been served. These notices are delivered by regular postal service and are considered served as of the date they are mailed. Special notices such as those resulting from opening a business part way through the year, are delivered by registered mail and are considered to be served on the date they are received.
I'm not sure which of these categories my business fits into. How can I find out?
Contact Us. Our staff will be happy to assist you.
How does Business Occupancy impact a landlord who pays municipal taxes associated with the Business Occupancy on behalf of a tenant as part of an overall lease?
Bill No. 191 contains a provision that allows a landlord to re-open a leasing agreement for the purpose of recovering increased taxes associated with the phase-out of the Business Occupancy Assessment Tax. This applies only in circumstances where a landlord directly pays municipal taxes on behalf of a tenant and has calculated this cost into an existing lease.
Bill No. 191 also allows for a one-time request by a tenant for information on their individual Business Occupancy assessment in order to determine if a landlord is making a fair and adjustment in rent. The landlord can obtain information on the full Business Occupancy for the whole building so that they can calculate the adjustments. Clients should contact PVSC for this information.
Contacting Us
For information on the nearest PVSC office please see the “Contact Us” link or call 1-800-380-7775.
Top
Related Links