A business improvement district, also referred to as a BID, is a defined area in which businesses and residential properties are required to pay an additional tax (or levy) in order to fund projects or provide supplemental services within the district’s boundaries. The BID is often funded primarily through the levy but can also draw on other public and private funding streams, such as surcharges on existing business licenses and occupational taxes. BIDs are the primary special tax district implemented in a Main Street programâ€™s boundaries as a means for providing additional funding and resources for the local Main Street organization.
The creation of a BID requires support from at least 51 percent of the municipal taxpayers of the district proposed for creation or municipal taxpayers owning at least 51 percent of the taxable property subject to ad valorem real and personal property taxation in the district.
BIDs can be created for a period of 5 or 10 years. In order to enact the proposed BID, the petition must be verified by the city, noticed and approved during a public meeting. The BID will have a board of appointed property owners who create the budget and are responsible for expending and allocating funds. The local Downtown Development Authority can serve as the board of directors for the BID.
Supplemental services are defined as those services provided for the improvement and promotion of the district, including, but not limited to, advertising, promotion, sanitation, security, business recruitment and development.