WHAT IS LAND USE CHARGE AND IS IT LEGAL?
Land Use Charge is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State. The Land Use Charge derives its legitimacy from the Lagos State Land Use Charge Law 2018.
WHO IS LIABLE TO PAY THE LAND USE CHARGE?
The responsibility for payment of the Land Use Charge resides primarily with the property owner. However, there is provision in the law establishing the charge for payment to be made by the occupier who is then empowered to get reimbursement of the payment made from the property owner.
ARE PROPERTY OWNERS SUPPOSED TO PAY FOR ASSESSMENT OF THEIR PROPERTY?
Assessment of properties for the purpose of Land Use Charge is free and Property Owners are not expected to make any payment whatsoever for the service provided by the Lagos State Government.
I OWN AN “EMPTY LAND”, AM I LIABLE TO PAY?
Yes. Since, Land Use Charge includes all land based rates.
IS THE AMOUNT DUE NEGOTIABLE?
No, it is not. However, if payment is made within 15days of the delivery of the Demand Notice, a discount of 15% is applicable.
SEVERAL PROPERTIES ARE RECEIVING LAND USE CHARGE BILL FOR THE FIRST TIME, YET THEY ARE BEING ASKED TO PAY ARREARS. WHAT ARE THEY TO DO ABOUT IT?
Every Property Owner has a civic responsibility to pay their property tax on an annual basis. Necessary documents should be provided to prove that this civic responsibility has been discharged for those years. Otherwise, the Land Use Charge should be paid.
SOME PROPERTY OWNERS HAVE PAID TENEMENT RATE FOR THE YEAR (S) BEFORE RECEIVING LAND USE CHARGE OR VICE VERSA, WHAT HAPPENS IN SUCH A CASE TO THE LAND USE CHARGE NOTICE?
In a situation whereby the property owner received the Tenement Rate Demand Notice and has made payment before receiving the Land Use Charge Demand Notice for the first time, the amount paid should be deducted from the Land Use Charge (if the Land Use Charge is higher than the Tenement rate,) then pay the balance. All evidence of payment including payment of Tenement rate should be forwarded to our office. However, where Land Use Charge Demand Notice is received before any of the Land Based Rates i.e. Tenement rate, Ground Rent and Neighborhood Improvement Charges, Land Use Charge should be paid as it covers all these rates and charges. See Section 35 of the Land Use Charge Law 2018.
WHAT DO I DO WITH THE RECEIPT/ TELLER AFTER PAYMENT?
In order to expedite the reconciliation of your payment in our records, we ask that you scan a copy of the teller and Lagos State Government receipt issued upon payment and send via e-mail to firstname.lastname@example.org or text the details of payments to our designated hotlines. These details should include Amount paid, Name of Bank, Date of Payment and Bank Payment Code or Notice Number.
WHAT HAPPENS TO ANY ARREARS?
Payment is to be made once and in full. However, any amount left unpaid is carried forward to the next year with its interest compliment.
WHAT HAPPENS TO THE DISCOUNT/PROVISIONAL PENALTY FEE WHERE THE NOTICE OF LAND USE CHARGE IS DISPATCHED / RECEIVED LATE DUE TO NO FAULT OF THE OWNER OF THE HOUSE?
The Property owner should go ahead to pay the discounted amount while claim would be confirmed with the Proof of Delivery and the account reconciled accordingly.
WHY ARE THE SAME TYPE OF PROPERTIES IN THE SAME AREA AND OCCUPYING THE SAME SIZE OF LAND BEING CHARGED DIFFERENT RATES?
For the purpose of Land Use Charge, properties are assessed individually. For any two similar properties, the physical appearance, aesthetic features and age will determine the property class rate (i.e. high, medium, and low) to be adopted in the valuation of the property. Another reason for charging different rates on any similar properties is the usage and status of occupation. It is noteworthy that property assessment is classified under 3 broad categories i.e. Commercial, Industrial/Educational and Residential usages.
Commercial properties generally attract a rate of 0.761% of the assessed Market Value. Industrial/Educational properties are assessed at a rate of 0.255% of the assessed value. Assessments of residential properties are categorized under three scenarios which attract different rates. A property solely occupied by the owner for residential purpose will be charged at a rate of 0.076%, while a similar property occupied by the property owner and tenant(s) or third parties will be charged at a rate of 0.255%. The third scenario/category is an investment property fully occupied by tenants or third party (ies) for revenue generation, charged at a rate of 0.761%.
CAN I PAY MY LAND USE CHARGE IN INSTALLMENTS?
The Land Use Charge does not provide for instalment payments particularly since 15% discount is granted for early payment. Any amounts left unpaid are carried over to the next year with its full interest compliment. However, please note that where underpayments/ installment payments have been made in respect of any property, the property is still in default and would be enforced on once enforcement activities commence.
CAN I PAY TO ANY BANK?
No, you cannot. There is a list of designated banks on the reverse side of your Demand Notice. It is also important to pay into the correct bank account as payment to wrong accounts invalidates payment.
DO I NEED TO ENGAGE TOUTS TO ASSIST ME WITH MY LAND USE CHARGE BILL?
There is no reason to engage the services of touts since all our communications channel are open, as we strive to maintain customer satisfaction.
I CANNOT PAY THE PENALTY CHARGES ON THE NOTICE OF DEFAULT SINCE I DID NOT RECEIVE THE FIRST DEMAND NOTICE. WHAT SHOULD I DO?
Please register your complaints through any of our customer service channel. However , note that all claims of non receipt of First Demand Notice will be checked against our Proof of Delivery of bills.
I PAID MY LAND USE CHARGE LAST YEAR BUT THE PAYMENT HAS NOT REFLECTED IN THIS YEAR’S ASSESSMENT, WHAT DO I DO?
Please pay this year’s assessment and visit our complaint office with proof of last year’s payment for reconciliation.
MY NEIGHBOURS HAVE RECEIVED THEIR LAND USE CHARGE BILL, WHY HAVE I NOT RECEIVED MINE?
There is no reason why you should not have received your bill. Please forward all request for bills through our hotlines or e-mail. Bills can be delivered physically to a designated address or sent via email to a specific email address.
You can equally walk into any of our offices to request for a printed copy of your bill.
THE DEMAND NOTICE I RECEIVED IS ADDRESSED TO “PROPERTY OWNER” SHOULD I PAY THIS BILL?
Kindly register your complaints through our hotlines or e-mail with your appropriate contact details. The matter will be addressed and an updated bill re-issued.
WHO IS A 3RD PARTY?
A 3RD party refers to anyone other than the property owner that resides on the property. This also includes relatives of the property owner who are of taxable age.
WHY HAS MY CHARGE BEEN INCREASED?
The Land Use Charge Law of 2001 was reviewed and subsequently repealed. The Land Use Charge Law 2018 was enacted which changed the formula for assessment and the market value was adopted as its basis for assessment.
WHY MARKET VALUE WHEN MY PROPERTY IS NOT FOR SALE?
The Market Value is as provided for by the new Law. However, provision for a 40% relief has been made available for all property owners. The use of Market Value is also to reduce the level of subjectivity and allow for self-assessment by Property Owners.
WHY AT THIS POINT IN TIME? ESPECIALLY WITH THE PRESENT RECESSION IN THE ECONOMY?
It was implemented at this point in time to reflect the current economic realities. Moreover, the Law has not been reviewed since 2001 i.e. Property Values have not been reviewed by the Government since then.
HOW DOES THE INCREASE BENEFIT THE PUBLIC?
Land Use Charge payment is benefit driven and it will further enable the State Government to provide more social amenities and economic infrastructures to the populace.