{"id":12407,"date":"2020-11-03T14:09:41","date_gmt":"2020-11-03T13:09:41","guid":{"rendered":"https:\/\/www.propertypro.ng\/blog\/?p=12407"},"modified":"2020-11-03T14:19:30","modified_gmt":"2020-11-03T13:19:30","slug":"lagos-state-land-use-charge-2020-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/propertypro.ng\/blog\/lagos-state-land-use-charge-2020-what-you-need-to-know\/","title":{"rendered":"Lagos State Land Use Charge 2020, What You Need To Know"},"content":{"rendered":"<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">In August 2020, the Lagos State Government released a new provision for the Land Use Charge (LUC) Law with new adequacies such as reduced penalties for defaulters, category of exempted people from the Land Use Charge and forfeiture of N5.8 billion penalties.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">With the introduction of reductions on land charges, the commission also implemented an increase in the Land Use Charge rate as well as the method of valuation of properties. This application has increase payables of Land Use Charge by property owners.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">&#8220;Currently, the Land Use Charge rate is in line with the pre-2018 law, while upholding the 2018 method of valuation.\u201d<\/span><\/p>\n<p><strong><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Crucial components of the new Land Use Charge Law<\/span><\/strong><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\"><strong>People exempted from the law:<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Property owned and occupied by pensioners are exempted from paying the LUC. This law covers both 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.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\"><strong>Non-exempted<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Profit oriented Cemeteries and Burial Grounds\u00a0<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Private Libraries<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\"><strong>Reductions of penalties and rates\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Days Outstanding Before Now<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">45-75 days from 25% to 10%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">75-105 days from 50% to 20%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">105-135 days from 100% to 50%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">A 48% reduction in the Annual Charge Rates:<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Definition Areas Before Now<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Owner-Occupied Residential Property 0.076% to 0.0394%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Industrial Premises of Manufacturing Concerns 0.256% to 0.132%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Residential Property\/Private School (Owner &amp; 3rd Party) 0.256% to 0.132%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Residential Property (Without Owner in residence) 0.76% to 0.394%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Commercial property (Used by the occupier for Business Purposes) 0.76% to 0.394%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Vacant Properties and open empty Land 0.076% to 0.0394%<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">Annual charge rate for Agricultural land was reduced from 0.076% to 0.01%. This is an 87% reduction from the old rate.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">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.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">In addition to the reintroduction 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 the due date<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">The penalty for obstruction of officials and damage to property identification plague has been reduced from N250,000 to N100,000<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">The penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">The 2020 LUC Law introduced a 10% and 20% special relief for Vacant properties and Open empty land, respectively.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">The right of enforcement has been reduced from notification of three (3) default notices to (2) default notices.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\"><strong>Agents of LUC<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif; font-size: 14pt;\" data-preserver-spaces=\"true\">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.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"In August 2020, the Lagos State Government released a new provision for the Land Use Charge (LUC) Law&hellip;\n","protected":false},"author":31,"featured_media":12408,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_custom_appearance":"","csco_disable_excerpt_posts_layout":false,"csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[3724,32],"tags":[],"class_list":{"0":"post-12407","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-lagos-tales","8":"category-real-estate-news","9":"cs-entry","10":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/comments?post=12407"}],"version-history":[{"count":1,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12407\/revisions"}],"predecessor-version":[{"id":12409,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12407\/revisions\/12409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media\/12408"}],"wp:attachment":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media?parent=12407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/categories?post=12407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/tags?post=12407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}