Do you know what the Land Use Charge is? Are you aware of its implications to you as a property owner? Did you know that the Lagos State Government recently increased its Land Use Charge? In this article, we will explain what the Land Use Charge it and its implication to you as a property owner.
To highlight the implications of the recent increase in the Land Use Charge in Lagos State, we will look at how Nigerians reacted to this news on social media as well as what real estate professionals had to say about the recent development.
We will begin by telling you what the Land Use Charge is, its purpose, those expected to pay as well as what happens when you fail to make payment.
1. What is Land Use Charge?
The Land Use Charge (LUC) is a incorporation of all property and land-based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State. Conversations around the Land use Charge in Lagos State often drifts in and out of the Land Use Act in Nigeria.
2. Is the Land Use Charge Legitimate?
The Land Use Charge is completely legitimate and it derives its legitimacy from the Land Use Charge Law No. 11, of 2001. This law is applicable to real/landed properties in Lagos State was passed into Law by the Lagos State Government with a commencement date of June 22, 2001.
3. What is the Purpose of the Land Use Charge?
The Land Use Charge was conceived to help the government generate more revenue to develop the state in the light of increasing demand for provision of urban and rural infrastructure and other expenditure within the state.
4. Who Pays the Land Use Charge?
The Land Use Charge is imposed on the owner of the property. In a situation where the property owner is not in possession of the property, the collecting authority is authorised to appoint an occupier, who is usually the tenant, to be assessed with and pay for the tax. The tenant is then authorised to offset payment of the Land Use Charge. The payment might be money due to the property owner from the tenant involved.
5. Does the Land Use Charge Apply to All Properties in Lagos?
The Land Use Charge does not apply to all properties in Lagos State.
6. Which Properties Are Exempted From Paying the Land Use Charge?
Properties that are exempted from paying the Land Use Charge are government-owned properties, and other properties used for public, religious and charitable activities. This exemption, is, however, only granted to property owners who have applied for such exemptions from Commissioner of Finance, Lagos State and have such exemptions granted.
7. When Happens When You Resist Payment of the Land Use Charge?
If you default, your payment increases of up to 25%, 50% and 100% respectively where you delay payment for up to 75, 105 and 135 days respectively from the date of when you ought to have made payment.
8. Is it a Criminal Offence to Refuse Paying the Land Use Charge?
Failure to comply with laws of the Land Use Charge can earn you 3 months imprisonment or a penalty of N100,000. Same applies to the deliberate obstruction of authorised officials, damages to property identification plaques or incitement to other persons to refuse to pay the Land Use Charge.
9. When Will Your Property be Liable to Enforcement?
According to the Land Use Charge Law, your property shall be liable to enforcement if payment is not made after 135 days of notice.
10. What Happened to the 2001 Land Use Charge Law?
The 2001 Land Use Charge Law has been repealed by the state government and replaced with the 2018 Land Use Charge Law. The goal of this new law is to increase the state’s internally generated revenue.