Barely two weeks after the Lagos State Government announced the increase in the price of Land Use Charge (LUC), there has been a huge reaction from the public, mostly against. Less than a year ago the real estate industry also witnessed a 100%+ hike in prices of land survey making property ownership a fortune for the average Lagos Ian and most especially the young people.
However, the Lagos State Governor, Akinwunmi Ambode on Monday during a session week stakeholder expressed his optimism that the new LUC law wild brings positive outcome in the overall interest of the people. The governor also reinstated that he is “opened to dialogue”
So what’s the Land Use Charge?
Similar to the 2001 Law, the LUC Law calculates Land Use Charge by multiplying the market value of the property (i.e. the sum of land value and building development value) by the Annual Charge Rate. Unlike the 2001 Law, market value under the LUC Law is to be determined by professional valuers appointed by the Commissioner of Finance. The LUC Law also includes a new ‘Relief Rate’ which is applied to the market value and charge rate. A General Relief Rate of 40% is applied in the calculation of Land Use Charge. Specific Relief Rates are also available at various rates ranging from 5% (for long occupiers of property) to 100% (for pensioners). Specific Relief may be applied for by disabled persons, aged persons, owners/occupiers of old properties (25 years and above), Federal and State-owned property, non-profit making entities and for timely payment of Land Use Charge (within 15 days). Applications for Specific Relief are made to the Commissioner of Finance with any relevant supporting documentation.
LIABILITY AND PENALTIES
The penalty for non-compliance with the provisions of the LUC Law has been increased from ₦100,000.00 to ₦250,000.00 or imprisonment for a period of 3 months.
Similar to the 2001 Law, failure to pay Land Use Charge within a specific period will attract a penalty.
Where Land Use Charge is not paid after 135 calendar days, the property is liable to enforcement. Unlike the 2001 law, the LUC Law also grants Lagos State the right to file and maintain a civil action against the owner or occupier of the property, or their agent.
Download a the copy of the LUC law HERE credit to Aluko & Oyebode Chambers
Let’s know what’s thought about this new law
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