A Business Revitalization Zone (BRZ) tax assessment is a value placed on any space occupied or used by a person for the purpose of operating a business that is situated in a Business Revitalization Zone. The assessment is used for taxation purposes only and does not reflect the profitability of a business.

The BRZ administration determines the annual revenue required to pay for revitalization initiatives within the BRZ. This revenue requirement (budget) is approved by City Council. The business assessment is used to determine each business's share of the total tax requirement for the BRZ.

Business assessments reflect the typical net annual rental value of similar businesses in an area. 

All businesses, including professional corporations located on commercial or industrial property within a Business Revitalization Zone are assessable. An assessment notice is sent to the owner of the business regardless of whether the person owns or rents the space.

A person having a lease may choose to sublet certain areas to another person; however the lessor may be assessed and taxed for the entire area.

To estimate the typical 'net annual rental value' of the space a business occupies, the City considers the commercial and industrial rental market across Edmonton.

Questionnaires are mailed to property owners, managers and agents each year and interviews may be conducted with tenants and agents. This rental information forms the database for the mass appraisal of business space.

Assessors analyze net rents paid for various types of space and establish typical net annual rental rates. Business assessments are calculated by multiplying the total leased or occupied area (square footage) by the net annual rental rate for the type of space.

The assessment (square footage multiplied by the net annual rental rate) shown on the assessment notice is multiplied by the tax rate set by City Council.

The result is the tax you owe.

Area x Net Annual Rental Rate = Business Assessment

Business Assessment x Tax Rate = Business Revitalization Zone Tax

Net rent is the typical annual rental value of similar space in an area, exclusive of all operating and occupancy costs.

The net annual rental value is based on an analysis of the rental market last July 1. Actual rents may differ due to timing of lease arrangements or varying rates within the market. Business Revitalization Zone assessments are based on typical annual rental rates for properties like yours, not your actual rent.

Properties are usually rented on a net rent basis (rents are set based on market value). Ratepayers can easily compare their assessments for consistency with other businesses.

With fluctuating operating costs, particularly utilities for older properties, net rent provides a current, fair and equitable way to distribute the Business Revitalization Zone tax.

Rental rates are reviewed and updated every year.

If you have concerns regarding your assessment, please contact us to discuss it with a Business Revitalization Zone (BRZ) assessor first. The assessor could make any necessary corrections and issue an amended notice.

If an assessor is unable to resolve your concerns, you may wish to appeal your assessment by filing a complaint with the Assessment Review Board by the deadline shown on your assessment notice. Information about the complaint process, including the filing fee, is included on the back of your assessment notice.

It is important to note that you can file a formal complaint on your BRZ assessment but not on the BRZ tax rate and amount of taxes.

Notify our office of any changes by e-mail, fax, mail, or in person.