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Commercial & Business Occupancy Tax

Effective April 1, 2008, responsibility for property assessment in Nova Scotia transferred from the Assessment Services division of Service Nova Scotia and Municipal Relations to the Property Valuation Services Corporation (PVSC). As a result, when your property assessment notice is mailed to you at the end of January, it will have a new look and come from a new organization. The re-designed notice is clearer, easier to read and contains what property owners said they wanted to see on their assessment notice. Please see the attached press release from PVSC for more information on the new assessment notice.

PVSC News Release.pdf

Commercial

includes all property or part thereof except residential property and resource property; this includes forest property owned by a person who owns fifty thousand acres or more
the Commercial Rate for the Fiscal Year 2009-2010 is $2.35 per $100 of assessment
the 2008 Taxable Commercial Assessment for the Municipality was $198,530,400

Business Occupancy

the Business Occupancy Rate for the Fiscal Year 2009-2010 is $2.35 per $100 of assessment
the 2008 Taxable Business occupancy Assessment for the Municipality was $34,351,600

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 Property Valuation Services Corporation (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.

Is business occupancy assessment being phased out?

As a result of requests by Nova Scotia municipalities and representatives from the business sector, the Province 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 and stop paying business occupancy tax.

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
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% 2006 40% 2007 30% 2008 20% 2009 10 % 2010 0% (eliminated)

For example: If the real property assessment for an occupied space in the 50% category is $100,000 in 2005, the Business Occupancy Assessment is calculated as follows: $100,000 x 50% = $50,000 In 2008, the Business Occupancy assessment will be calculated by multiplying the Real Property Assessment by 20%; in 2009 by 10%, until Business Occupancy Assessments are eliminated in 2010.

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 the 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 the municipality.

Am I exempt from Business Occupancy?

There are a few exemptions. If you occupy property for any non-profit community, charitable, fraternal, educational, religious, cultural or sporting organization or institution, you will not be assessed for a Business Occupancy.

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. You'll 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. For example: If the regular assessment notices are postmarked February 1, appeals must be received by the PVSC office no later than February 22. If a business that has recently opened receives and signs for a notice of assessment by registered mail on November 1, the appeal must be received by the PVSC office no later than November 22.

I'm not sure which of these categories my business fits into. How can I find out?

Contact your local PVSC office.

I'm late getting my business information to the Regional Assessment Office. What do I do now?

Up-to-date information is required in order to provide clients with accurate assessment information. Please contact your local PVSC office right away with the correct information.

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 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 their local PVSC office for this information.

Please access the following links to obtain more information on the following topics:

How do I find out more information about assessments?

Information is available online at Property Assessment Online. If you have other questions or wish to obtain more information about your property assessment, please contact your local PVSC office.