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.
Professionals React to the Latest Increment in the Land Use Charge in Lagos
Rising to the defence of the homeowners and tenants, the President of Lagos Chamber of Commerce and Industry, Mr Babatunde Ruwase, made the following observations:
1. Only 300,000 Property Currently Pay the Land Use Charge
Currently, only 300,000 property pay the Land Use Charge in Lagos while 700, 000 property have been identified for payment.
2. The Government Needs to Shift Its Priorities
Ruwase was of the opinion that the Lagos State Government needs to focus on getting more property into its net of payment instead of imposing the additional burden on property currently on its database
3. The Manufacturers Association of Nigeria Kicks Back
Other professionals have urged the Lagos State Government to reverse the Land Use Charge Law. One of such people was the President, Manufacturers Association of Nigeria, Dr Frank Jacobs. Like Ruwase, he also made some observations.
Nigerians React to the New Land Use Charge Law
A cross-section of Nigerians too to their social media accounts to respond to the increased Land Use Charge. Here are a few reactions from Twitter:
Ambode is creating alot of new problems in Lagos.
Watch landlords increase rent in Lagos just because of this his 400% increase on Land Use Charge.
Bear in mind Lagos hasn't ensured landlords charge only one year rent as the law specifies.
— Pakuma (@ThePakuma) March 8, 2018
FAKE NEWS!!!
FACT HERE: pic.twitter.com/jSoVaqixr9
— Azeez🌹 (@aaolaitan) February 28, 2018
Who 'll rescue us from the hands of this wicked Lagos state govt?
The LASG is targeting a N750 billion revenue in 2018,therefore one of the ways is to increase the land use charge by over 300%!
How can Land use charge jump from over 50k to 400k?
Jesu! Ambode kuku kill us
— Miz Cazorla (@MizCazorla1) March 6, 2018
@segalink Gov Ambode as an accountant has an ethical obligation to be transparent and honest in his budget unveiling. You cannot just wake up and increase d land use charge which was a fraud in the first place. The economy of d country is bad already. This Apc are a problem o.
— Oluwaseun temitayo (@Seuntemitayo4) March 8, 2018
If someone owns a property in Surulere worth N50m, they need to pay Lagos State N38k annually in land use charge so long they live there. If they have tenants, however, their land use charge is N380k. Expect your rent to go up.
— Mark Essien (@markessien) February 27, 2018
Land use charge goes up means rent will go up
Pls why are we docile in lagos? Even if we are Pro APC here lets call out what is wrong
— Cinderella Man (@Osi_Suave) March 1, 2018
The Land Use Charge is for Landlords, but we know that it is the tenants that pay it either directly or indirectly through rent increases. When the Lagos State Govt decided to increase that charge, surely it must know that the tenants will bare the cost in increased rents. No?
— I am an #HERmbassador (@yinkanubi) March 1, 2018
Funniest thing is that the people being paid to tweet in support of the Land Use Charge don’t own property, but see the energy they’re using to argue with property owners who actually have seen their new bills.
— Editi Effiòng (@EditiEffiong) March 7, 2018
They increased land use charge to add some private company into law that will be collecting the money. LOL. Lagos. State. https://t.co/ILxbvI4J5f
— Written By (@DamiElebe) March 7, 2018
2) abolished. Tinubu’s company (Alpha Beta) was inserted in the fraudulent “Land Use Charge Act” of Lagos State. By paying “land use charge,” you will be allowing Bola Tinubu and his company (Alpha Beta) and his collaborators to own you and steal your money. pic.twitter.com/mWbL4xCRRf
— ≋ A B ≋ (@AgorasBlog) March 7, 2018
First! Increasing land use charge by 200% is absurd. Now we hear it's Alpha Beta that will be in charge of payment. We clearly know what's going on here. So this is how they want to generate money for election?
— Kay Baba (@datGuyKOFO) March 7, 2018
