BID Levy Rules
And Governance

 

BIDs are funded by the businesses in the BID area. If the ballot for Bilston BID is successful, every single eligible business will pay an annual levy to the Business Improvement District (BID), raising over half a million pounds annually for the delivery of services and projects contained in the Business Plan. 

Find out all the reasons you should vote YES for our second term in our upcoming ballot

The BID levy will be calculated as follows;

2.5 % of your rateable value – capped at £15,000*

The BID regulations of 2004 sets out the rules and regulations under which the BID operates.

The Rules

1. The BID levy will be applied to all eligible non-domestic properties within the BID area with a rateable value. Properties within the BID area with a Rateable Value below £500 will not be subject to the BID levy.

2. Throughout the BID term the BID levy rate is 2.5% of the Rateable Value per annum.

3. Throughout the 5-year BID term the BID levy will be based on the Rateable Value as at the ‘chargeable day’ being the 1st April each year.

4. The maximum levy charged on any single hereditament has a cap of £15,000 per annum (subject to rule 5).

5. *The BID levy may increase by an annual inflation factor that reflects an increase of no more than the Consumer Price Index (CPI) as at September in the preceding financial year, to be agreed by the BID Board of Directors on an annual basis from 2021 onwards.

6. As a revaluation occurs the new Rateable Values are applied to the levy to be effective from 1st April in the year of the revaluation.

7. When a Rateable Value changes, is subject to a split or merge, is removed or entered into the ratings list this will have no effect on the BID levy until 1st April the following year.

8. The levy is collectable on a ‘chargeable day’ basis, the person liable to pay the BID levy is the liable party for the non-domestic rates for the hereditament on the 1st April each year.

9. Owners or registered business ratepayers of vacant, untenanted properties or hereditaments, properties undergoing refurbishment or properties demolished will be liable for the BID levy.

10. The BID levy is payable annually in advance of 1st April each year.

11. If a Rateable Value changes after the chargeable day the revised levy will be charged at the next chargeable day irrespective of the date change.

12. Non-retail charities with no trading income, arm or facilities, not for profit subscriptions and
volunteer-based organisations will be exempt from paying the levy.

13. Non-retail charities with no trading income, arm or facilities, not for profit subscriptions and
volunteer-based organisations will be exempt from paying the levy.

14. The BID Levy will not be affected by small business rate relief schemes, service charges paid to landlords, exemptions, discretionary relief or discount periods or schemes in the National Non-Domestic Rate Regulations 1989 made under the Local Government Finance Act 1988.

15. VAT will not be charged on the BID levy.

16. BID arrangements may be altered without an alteration ballot as long as there are no proposals to alter the geographical area of the BID or alter the BID levy in such a way that would cause any person to be liable to pay the BID levy who was not previously liable to pay; or to increase the BID levy for any person other than for inflation purposes.

17. The term ‘Renewal’ means replacement of the existing BID at the end of its current term (March 2021) with new BID Arrangements covering the extended area and subject to the rules and arrangements
described herein.

Governance

1. The not for profit Bilston BID Company which manages the BID will continue to operate limited by guarantee.

2. Any surplus profits must be spent on delivering services and projects in the BID area, agreed by the businesses and by the Board of Directors.

3. The Bilston BID Company’s Board of Directors will continue to operate and meet once per month. The Board will remain a representative group of levy paying businesses.

4. The Board of Directors will be directly accountable to BID levy payers and will be responsible for delivering the projects and services that are set out within this BID Business Plan.

5. The BID will be managed on a daily basis by a BID Manager to ensure that all projects are delivered efficiently and effectively and in accordance with the vision of this plan.

6. The Board will have the ability to vary the service delivery and expenditure allocated according to the changing demands of levy payers.

7. An Operating Agreement, which includes the Council’s baseline service statements has been agreed with City of Wolverhampton Council. A copy of this document can be found here

8. Notice of intention to hold a ballot was given to the Secretary of State on 24th September 2020.

9. Notice of ballot will be sent to participating businesses by City of Wolverhampton Council within the required statutory period.

10. The BID will continue to monitor its performance against annual objectives and will report to levy payers at least once a year.

11. The BID will provide regular business updates, a periodic newsletter and a financial statement will be distributed to businesses along with the BID levy invoice annually.

12. Following a successful YES vote, the Bilston BID Company will start the BID term from 1st April 2021, running for a term of 5 years.