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 Improvement Area Tax