PREVIOUS PAGE ON LAND USE CHARGE - Repealed and Re-enacted; A must Read
1. Owner-occupied residential property–0.0761% per annum of the assessed property value
2. Owner-occupied pensioner’s property–Exempted from LUC
3. Lagos State Government property – Exempted from LUC
4. Industrial premises of manufacturing concerns–0.255% per annum of the assessed property value
5. Residential property (owner and third party–0.255% per annum of the assessed property value
6. Residential property (without owner in residence)–0.761% per annum of the assessed property value
7. Commercial property (used by occupier for business purposes)–0.761% per annum of the assessed property value
8. Vacant property and open empty land–0.0761% per annum of the assessed property value
RELIEFS FOR LAND USE CHARGE PAYERS
•The reliefs include:
a)General relief of 40% (applicable to all property liable to pay LUC); and
b)Specific reliefs applicable to property owners and leases of 10 years and above for:
I. Pensioners (60 years and above)–100% for owner-occupied property
II. Persons with disability–10% for owner-occupied property
III. Aged persons (70 years and above) –10% for owner-occupied property
IV. Age of property–10% for property aged 25 years and above
V. Long occupation by owners–5% for 12 years and above
VI. Federal and other State Government property–20% for non-revenue generating property
VII. Partial relief under the LUC Law–20% for Non-Profit-making Organizations
a)General relief of 40% (applicable to all property liable to pay LUC); and
b)Specific reliefs applicable to property owners and leases of 10 years and above for:
I. Pensioners (60 years and above)–100% for owner-occupied property
II. Persons with disability–10% for owner-occupied property
III. Aged persons (70 years and above) –10% for owner-occupied property
IV. Age of property–10% for property aged 25 years and above
V. Long occupation by owners–5% for 12 years and above
VI. Federal and other State Government property–20% for non-revenue generating property
VII. Partial relief under the LUC Law–20% for Non-Profit-making Organizations
Please note that you will need to
provide relevant documentary evidence to support their relief claims and all
application for reliefs can be made to the Commissioner for Finance for
approval and supported with relevant documents.
All Land Use Charge paid within 15 days of receipt of Demand Notice will enjoy a timely payment discount of 15%.
Also note that the minimum LUC payable on any given property shall not be less than ₦5,000 irrespective of any LUC relief granted on the property and property enumeration and valuationis an exclusive right of the Commissioner for Finance to appoint Property Identification Officers, Professional Valuers and other persons as may be considered necessary for the purpose of assessing the charge applicable to a property.
All Land Use Charge paid within 15 days of receipt of Demand Notice will enjoy a timely payment discount of 15%.
Also note that the minimum LUC payable on any given property shall not be less than ₦5,000 irrespective of any LUC relief granted on the property and property enumeration and valuationis an exclusive right of the Commissioner for Finance to appoint Property Identification Officers, Professional Valuers and other persons as may be considered necessary for the purpose of assessing the charge applicable to a property.
The following category of property are exempted from LUC:
1. Property owned and occupied by a religious body and used exclusively as a place of worship or religious education;
2. Public cemeteries and burial grounds;
3. Property used as a registered educational institution certified by the commissioner to be non-profit making;
4. Property used as public library or as a private library certified by the commissioner to be non-profit making;
5. Any property specifically exempted by the Executive Governor by notice published in the State Official Gazette; and
6. All palaces of recognized Obas and Chiefs in the State provided that if any of the exempted property is leased out to private entities for revenue generation, it shall forfeit its exemption status as contemplated under the provisions of this Law.
1. Property owned and occupied by a religious body and used exclusively as a place of worship or religious education;
2. Public cemeteries and burial grounds;
3. Property used as a registered educational institution certified by the commissioner to be non-profit making;
4. Property used as public library or as a private library certified by the commissioner to be non-profit making;
5. Any property specifically exempted by the Executive Governor by notice published in the State Official Gazette; and
6. All palaces of recognized Obas and Chiefs in the State provided that if any of the exempted property is leased out to private entities for revenue generation, it shall forfeit its exemption status as contemplated under the provisions of this Law.
OFFENCES AND PENALTIES
Any person who Refuses or neglects to comply with any provision
of this Law when required to do so by the Property Identification Officer or an
Assessor; or Prevents, hinders, or obstructs any Property Identification
Officer or an Assessor in the course of lawful duty; or removes, damages or
destroys a Property Identification plaque on any Property or building, commits
an offence and shall be liable on summary conviction to a maximum fine of two
hundred and fifty thousand naira only (₦250,000) or to a maximum term of
imprisonment for a period of three (3) months or both.
Anyone who incites another person to refuse to pay LUC; or Incites or assists any person to misrepresent in any way the person’s chargeable property; commits an offence and shall on summary conviction be liable to a maximum fine of two hundred and fifty thousand naira only (₦250,000) or to a maximum term of imprisonment for a period of three (3) months or both.
Anyone who incites another person to refuse to pay LUC; or Incites or assists any person to misrepresent in any way the person’s chargeable property; commits an offence and shall on summary conviction be liable to a maximum fine of two hundred and fifty thousand naira only (₦250,000) or to a maximum term of imprisonment for a period of three (3) months or both.
DISPUTE RESOLUTION MECHANISM
The new LUC Law establishes an
Assessment Appeal Tribunal (“the Tribunal”) in each division of the State to
treat all appeals and resolve any potential disputes; Each Tribunal shall
consist of:
1. A Chairman who shall be a legal practitioner of not less than 15 years post-call experience;
2. A representative of the Attorney-General;
3. A registered town planner;
4. A registered land surveyor;
5. A registered estate valuer;
6. A representative of the Lagos State Valuation Office;
7. A person with cognate experience in accounting and taxation; and
8. Two (2) persons from the private sector.
1. A Chairman who shall be a legal practitioner of not less than 15 years post-call experience;
2. A representative of the Attorney-General;
3. A registered town planner;
4. A registered land surveyor;
5. A registered estate valuer;
6. A representative of the Lagos State Valuation Office;
7. A person with cognate experience in accounting and taxation; and
8. Two (2) persons from the private sector.
A person may make an appeal to the
Tribunal if aggrieved by:
1. A decision that the property which the person owns is a chargeable property, or that the person is liable to pay LUC in respect of such property; or
2. Any calculation of an amount which the person is liable to pay as LUC, and the Tribunal shall make such decision as it deems fit.
1. A decision that the property which the person owns is a chargeable property, or that the person is liable to pay LUC in respect of such property; or
2. Any calculation of an amount which the person is liable to pay as LUC, and the Tribunal shall make such decision as it deems fit.
Conclusively, in resolving disputes
arising from the provisions of this Law, the parties shall submit to a
confidential mediation in an effort to resolve such disputes and where the
mediation does not resolve the dispute within 45 working days of the first
session or when the mediator declares an impasse, the mediation shall be deemed
inconclusive and parties shall be at liberty to resolve their dispute formally
at the Tribunal or through any other lawful means.
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