How Fees are Assessed
Welcome to the Downtown Business Community
You have located your business in the vibrant Downtown Business Improvement District. To support the District, Downtown business owners and nonprofit organizations voted to establish Business Improvement Assessments, initially in the sixties, in 1994, and again in 2023. These assessments support Clean, Safe & Welcoming Services, District Marketing and Business Advocacy. Business Improvement Assessments are collected by the City of Santa Cruz and forwarded directly to the Downtown Association of Santa Cruz (DTA).
The DTA actively promotes the downtown Santa Cruz business district through marketing, social media, programs, place management, and events. The DTA sponsors many special events to attract both local and regional visitors to Downtown. The DTA coordinates common retail promotion and group advertising. The DTA also, at the direction of its Board of Directors, lobbies the City Council and its advisory bodies on issues beneficial to business owners in the District. Critically, the DTA also manages and secures funding for the Downtown Ambassador program, which provides clean, safe and welcoming services to the District on a daily basis.
WHO IS RESPONSIBLE FOR PAYING THE BUSINESS IMPROVEMENT ASSESSMENT?
Once operations begin in the Business Improvement District, tenants are responsible for paying District assessment fees. For profit and non-profit organizations both contribute to improving their District. The annual fee is billed semi-annually on 1/1 and 7/1. Late fees apply.
HOW ARE BIA FEES CALCULATED?
Business Improvement Assessments are based on the following formula:
(Business Area X Rate [.54] X Type X Zone) + $100.00 = Annual Assessment
Annual Assessment / 2 = Semi-Annual Assessment
Example: (1,000 Sq Ft) x .54 x 100% (Type 1) x 60% (Zone 2) + $100.00 = $424.00 / 2 = $212.00 Semi-Annual Assessment
| BUSINESS IMPROVEMENT RATES: | |
| TYPE 1 - 100% | Retail, Food, Lodging |
| TYPE 2 – 75% | Financial, Bars |
| TYPE 3 – 60% | Wholesale Trade, Services, Professions, Auto Dealers |
| Type 4 – 40% | Non-Profit, Theaters (capped at 10,000 SF) |
| ZONE 1 - 100% | |
| ZONE 2 - 60% | |
| Note: Please refer to the Business Improvement Info Sheet to determine your Zone. | |
QUESTIONS?
Invoice Questions (amounts, penalties, late payments):
City of Santa Cruz Finance Department
(831) 420-5070
Policy Questions (how fees are used)
Downtown Association Of Santa Cruz
(831) 332-7422 x6