The Lagos state house of assembly
has amended the 2018 land use charge after a public outcry against the law.
The 2018 land use charge required
property solely occupied by the owner for residential purpose to be charged at
a rate of 0.076 percent per annum.
Also, a property occupied by the
owner and tenant(s) or third parties will be charged at 0.256 percent per
annum, while an investment property fully occupied by tenants or third
party(ies) for revenue generation will be charged at 0.76 percent per annum.
The Ikeja branch of the Nigerian
Bar Association (NBA) had resisted the implementation of the law, asking people
not to pay.
The adoption came after the
six-man ad hoc committee constituted to review the law presented the report of
its findings following a public hearing.
Rotimi Olowo, chairman of the
committee, said the public hearing revealed that the increase is generally
“perceived to be arbitrary and unrealistic in a recessed economy” and that the
state government should revert to the land use charge of 2017.
He said participants and
stakeholders agreed that a vacant plot of land and unoccupied properties should
be exempted from the land use charge liabilities.
“The Committee also posited that
Section 17(c) (i) there is no need for 50% payment by an aggrieved owners over
disputed charges before their eligibility to appeal; while aggrieved
residents/owners should pay the preceding year’s charges while the disputed
charges are being resolved; amongst others,” a statement from the assembly
read.
“The Committee however,
recommended that as from the commencement of this Law; there should be proper
classification of commercial and residential properties in the State for the
purpose of levying charges in accordance with the provision of this Law by the
property identification officers of the Ministry.”
The committee also recommended
that “there shall be twenty percent (20%) increase from the fees chargeable
before the repeal of the Land Use Charge Law Ch. L79 2015, and the increment
referred to in sub-section (1) above shall be renewable every ten (10) years;
Pensioner should be replaced with a person who retires from a Pensionable
Office; The owner of the property is liable to pay Land Use Charge in respect
of any taxable property.”
“It should be noted that from the
date when Land Use Charge is levied on a property in accordance with this Law,
the provisions of the Assessment Law, Land Rates Law, Neighborhood Improvement
Charge Law and any amendments made pursuant to it shall cease to apply to that
property amongst other recommendations,” it said.
The assembly adopted the
recommendations.
