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Lagos State clears the air on Land Use Charge in Stakeholders Meeting

BellaNaija.com

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Lagos State clears the air on Land Use Charge in Stakeholders Meeting - BellaNaija

The Lagos State Government held a meeting with stakeholders in the state to clarify the issue around its review of the Land Use Charge.

The forum was organised by the Lagos Chamber of Commerce and Industry (LCCI), and had the state’s Commissioner for Finance, Akinyemi Ashade, explain how the charge is calculated.

The Land Use Charge is aimed at entrenching a regime of self-assessment, Ashade said, and will allow property owners make their own calculation and know their rate with the help of professional valuers. He said:

The Land Use Charge law institutes the regime of self-assessment. The intent of the reviewed Law is for Lagosians to be able to compute the amount payable on their respective property by themselves.

You don’t have to wait for demand notices before your pay your charges, you can calculate it yourself, engage us, you can make your payments voluntarily. Do it yourself, let’s dialogue and let’s get the basis right.

He explained that the charge varies for different types of building, saying owner-occupied buildings are charged differently from commercial ones. He said:

If you are a landlord and you are the only one living in your house with your family, your annual fee is 60% of the value of the house × 0.076%.

For instance, if your house is valued at N20million, your fee is 0.076% of (60% of N20m) = 0.076% x N12m = N9,120.00 per annum

Secondly, If you are a landlord living with your tenant in the same building value of N20million, you will pay 0.256% of (60% of N20m) =0.256% × N12m= N30,720.00 per annum.

Thirdly, If you rented out the house to tenants only and you don’t live there and the house is worth N20million, you will pay 0.76% of (60% of N20m) = 0.76% of N12m = N91,200.00 per annum.

The Law does not tax the market value of properties. It gives a general discount rate of 40% to all property owners in the state. The Land Use Charge Law is holistic and fair to everybody. It is quite undiscriminatory. It is not one cap, fit all. Market value of properties in Ikorodu and Ikoyi can never be calculated as the same.

The state also released a scenario analysis of how the Land Use Charge is computed. See the scenario below:

Lagos State clears the air on Land Use Charge in Stakeholders Meeting - BellaNaija

5 Comments

  1. BBalogun

    March 13, 2018 at 1:07 pm

    Dear Commissioner, please address the following:
    1. Why increase rates in a year Nigerians are financially challenged and the country is just coming out of recession?
    2. Lagos State is asking Landlords to moderate rent and collect monthly, yet at the same time it is increasing taxes by 500% for flats and multi-tenanted residences
    3. Why charge Land Use Charge on an empty and undeveloped land? Is this not ridiculous? The owner is still struggling to pay high consent fees from Lagos State, ridiculous building approval fees and arbitrary individual tax clearance fees. Of what use is the land being put to at this point? Is this not double jeopardy?
    4. Why revalue a property unilaterally for tax purposes? The Landlord is yet to sell. Revaluation is unfair and debatable because no real value has been transferred to the owner of the property and land. Is that not what capital gains tax is for? Imagine a property owner that struggled to build with loans only for government to revalue to extract more money through taxes.
    5. Why increase LUC a few months before elections?
    6. Most importantly there is still no transparency in term of Lagos State Government spending. Still a family and friends club affair.
    7. If Lagos State Government is so insensitive and inconsiderate, maybe it’s a signal to reevaluate during the next elections.

  2. Queeny

    March 13, 2018 at 1:51 pm

    The person that advised the governor on this just killed him……..which one is land use charge when in the history of Lagos State have people paid land use charge…..

  3. Cmbo

    March 13, 2018 at 4:01 pm

    There are perfection fees, survey fees,valuation fees , all sorts of crazy fees attached to owning property in Lagos; and they are not cheap. Everything has been increased. This is separate from all other avenues of taxation that we are made to bear. Will Lagos not be satisfied until you run the average citizen into the ground? Keep talking about development that we are struggling to see. biko it’s enough.

  4. Funmi

    March 14, 2018 at 4:09 pm

    Price to pay for development hun… Ask me how much council tax I pay every month for a 2 bedroom flat. You want Lagos to be world class city be ready to pay your bills otherwise move to the suburb…..Just saying

    • tunmi

      March 14, 2018 at 7:52 pm

      True

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