Old Town Business – Business Improvement Service District Tax

The Old Town Business – Business Improvement Service District will be funded by a $0.10 service district tax that will be levied in addition to the real property tax (current rate of $1.11, with service district tax a total of $1.21, representing a 9% increase in the total tax rate) on parcels of real property within the OTB-BISD.

For example, a parcel with a taxable value of $2.5M that currently pays $27,500 in annual property taxes would be billed an additional $2,500 for a new total of $30,000. Whether the tax is paid by a NNN tenant or by the landlord, the impact on rents will be minimal, 1% for this same $2.5M building:

Building size          6000 SF
Avg rent               $45.00 PSF
BISD tax               $2500/yr
BISD tax PSF        $.42
Rent + BID tax      $45.42 (+1%)

EXEMPTIONS: Parcels of real property that are either exempt from real property taxes or strictly residential in use, as determined by the City on an annual basis, shall not be billed the annual OTB-BISD tax.