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Saturday, December 10, 2022

Lagos Reverses Land Use Charge Rate to 2017 Level, Waives Penalties

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The Lagos State Government has reversed the Land Use Charge Rate to pre-2018 levels while upholding the 2018 method of valuation, according to the State’s Commissioner of Finance Rabiu Olowo, at a press briefing today.

“We considered the Land Use Charge reform very necessary to accommodate the agitations of Lagosians and reduce the financial pressure on citizens as it relates to Land Use. As you are aware in 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this Twin shock had a sporadic increase in Land Use Charge payable by property owners,” said Olowo.

“In view of the aforementioned, the current administration decided to review the Land Use Charge law by reversing the rate of Land Use Charge.”

The reform also considered multiple Land Use Charge payment channels and efficient customer service management by setting up a call centre (0700 LAGOS LUC) in other to ensure prompt issue resolution.

Some of the new provisions in the new 2020 Land Use Charge Law include:

  • The definition of Pensioner has been expanded to include “all retirees from private and public institutions in the state or any person that has attained the age of sixty (60) years and has ceased to be actively engaged in any activity or business for remuneration”
  • A property owned and occupied by a pensioner is exempted from paying LUC
  • Also, the percentage (%) increase in penalties for defaults in paying LUC has been reduced as follows:
Days Outstanding                      Before Now
45-75 days 25% 10%
75-105 days 50% 20%
105-135 days 100% 50%

 

  • In addition to this, there is also a 48% reduction in the Annual Charge Rates as follows:
Definition Areas Before Now
Owner-Occupied Residential Property 0.076% 0.0394%
Industrial Premises of Manufacturing Concerns 0.256% 0.132%
Residential Property/Private School (Owner & 3rd Party) 0.256% 0.132%
Residential Property (Without Owner in residence) 0.76% 0.394%
Commercial property (Used by occupier for Business Purposes) 0.76% 0.394%
Vacant Properties and open empty Land 0.076% 0.0394%

 

  • Still on reductions, another major sector that had its charge reduced is Agricultural sector, which annual charge rate for Agricultural land was reduced from 0.076% to 0.01%. This is an 87% reduction from the old rate.
  • Penalties for Land Use Charge for Year 2017,2018 and 2019 have also been waived. This translates to N5,752,168,411.03 potential revenue waived by the State.
  • In additional to the re- introduction of the 15% early payment discount, an additional Covid 19 incentive of 10% will be granted on the total amount payable. This makes the total discount for early payment 25% if payment is made before due date
  • The penalty for obstruction of officials and damage to property identification plague has been reduced from N250,000 to N100,000
  • The penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000
  • The 2020 LUC Law introduced a 10% and 20% special relief for Vacant properties and Open empty land, respectively.
  • The right of enforcement has been reduced from notification of three (3) default notices to (2) default notices.
  • Profit oriented Cemeteries and Burial Grounds are no longer exempted from payment of Land Use Charge
  • Private Libraries are also no longer exempted from paying Land Use Charge
  • An important section which I intend to bring to light is section 14 of the Law which makes it possible for the Commissioner to appoint any person including an occupier of a chargeable property to be an agent of the owner for the purpose of collecting Land Use Charge.
  • We have completed the LUC Reform process and review of bills. Property owners should expect to receive their 2020 LUC bills shortly and we expect property owners to leverage on the 25% early payment discount.

Furthermore, The LUC payment can now be made Online via https://Lagos.ebs-rcm.com Payment can also be made using USSD Code to any Lagos State designated banks with the appropriate code stated below:

Fidelity –         *770*1*7# or *770#

Ecobank –       *326#

Unity Bank –   *7799*302#

MOBILE BANKING PAYMENT OPTIONS

GTB

UBA

FIDELITY

POLARIS
ZENITH

FCMB

KEYSTONE

WEMA

INTERNET BANKING PAYMENT OPTIONS

GTB

UBA

FIDELITY

POLARIS
ZENITH

FCMB

KEYSTONE

Also, the Lagos State Ministry of Finance has expanded its Complaints Resolution Process and as such, Lagosians are advised to make complaints about their bills through these E-mail addresses:  luc@lagosstate.gov.ng, OR citizensgate@lagosstate.gov.ng and Phone call :08058584486, 09086786001

Alternatively, Lagosians can visit any Walk –In contact centers in the following areas across the State:

  1. ALIMOSHO (107, Agege Motor Road, Idi-oro, Bus stop, Lagos)
  2. ETI-OSA (9 Ahmed Onibudu Street, Victoria Island Lagos)
  3. ETI-OSA (Connect Center Building KLM 35, Lekki-Epe Exp Way, Eputu, Lagos)
  4. IKEJA (Ministry of Finance Revenue Complaints & Information Unit, Block 12, Alausa Ikeja)
  5. IKEJA (73, College Road, Ifako- Ijaiye, Lagos)
  6. SURULERE (2 Plateau Road, Apapa, Lagos)

 

 

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