Land Use Charge: FREQUENTLY ASKED QUESTIONS

With an announcement that the Lagos State Government will no longer accept cash payment in revenue collection effective from March 1, 2018, the government is doing all its best possible for taxable adults to be educated on the Land Use Charge.

Here are some Frequently Asked Questions:

1. 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.

2. 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.

3. 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.

4. I OWN AN “EMPTY LAND”, AM I LIABLE TO PAY?
Yes. Since, Land Use Charge includes all land based rates.

5. 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.

6. 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.
7. 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.

8. 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
luc@lagosstate.gov.ng 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.
#

9. 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.

10. 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.

11. 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%.

.To be continued

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