Finance Plan

Annual BID Tax Summary

A BID is funded through a self-imposed tax on non-exempt property owners in order to provide a higher level of services for a designated area on behalf of those property owners. The Capitol Riverfront BID will be funded through annual BID taxes that will be assessed for non-exempt properties according to the following formulas:

• The amount of $0.09 per $100 of the assessed value of unimproved land or commercial buildings containing less than 50,000 gross square feet;
• The amount of $0.04 per $100 of the assessed value of land and buildings which have a certificate of occupancy or other District license indicating that the land or building has an existing active industrial, utility or storage use;
• The amount of $0.02 per $100 of assessed value of land and buildings located within the right of way for the proposed realignment of the Frederick Douglass Memorial Bridge;
• The amount of $0.12 per gross square foot of commercial buildings containing 50,000 gross square feet or more; provided that the BID tax imposed on any such building shall not exceed $75,000 annually;
• The amount of $72.00 per hotel room annually; and
• The amount of $96.00 per unit annually for nonexempt residential properties. Residential property units with less than ten (10) units shall not be subject to the BID tax. As required by law, publicly subsidized housing is not subject to the BID tax.

The BID tax may be increased up to 5% annually over the current tax year rates by a 2/3 vote of the BID membership.

First Year Budget

After approval and registration by the District Government, the BID’s first full year of operations is anticipated to begin on October 1, 2007 to coincide with its fiscal year. The first BID tax will occur in September 2007 and begin generating revenues to fund BID operations. Based on the BID tax formulas, it is estimated that the first year’s revenues will be approximately $1,540,000. The first year’s budget has been projected at approximately $1,515,000.

Budget and Service Increases

As the Capitol Riverfront BID matures over the next five years, more vacant, underutilized, or industrial property is expected to be developed to a “higher and better use”, with greater densities in use and square footages of building. As a result, the demand for BID services is projected to increase during that time as more employees and residents come to the area. When this development does occurs, the revenue stream for the BID will increase as well as the demand for additional services and the annual operating budget.

BID Tax Billing Cycle

BID taxes are billed twice a year at the same time as real property taxes—September and March of every year. The BID tax is billed six months in advance:

• The September billing is for October 1st through March 31st
• The March billing is for April 1st through September 30th