Topics: Real estate, Property, Property tax Pages: 9 (2814 words) Published: April 12, 2015


The land use charge law came into force on the 22nd of June 2001 and has twenty four sections. The law which is now being enforced, established that a land based charge is payable on real properties situate in Lagos Nigeria with each Local government empowered to levy and collect the charge for its area of jurisdiction as collecting authority. Each collecting authority may delegate to the state, by written agreement, its functions with respect to collection of rates and the assessment of privately owned houses or tenement for purpose of levying the rate. The commissioner of Finance is by law empowered to undertake or cause to be undertaken an assessment of chargeable properties in such areas as may be designated, and appoint property identification officers, qualified assessors and other persons considered necessary. The assessment which is to consist of inspection of a property, collection of documents and information and taking of photographs expected to be carried out between the hours of 7.00 am and 5.00 pm. The payment of the Land Use Charge which is based on annual capital sum is to be paid by the property owner. According to Section 5 (1) of the law, the formula for determining the annual amount payable is: LUC = M × {(LA × LV) + (BA × BV × PCR)} Where LUC = annual amount of Land use charge in Naira

M = the annual charge rate expressed as a percentage of the assessed value of the property. The assessed value in this case may vary between owner occupied residential and commercial properties at the discretion of the State Government. Commercial property refers to those that are revenue generating. LA = the area of the land parcel in square metres.

LV = the average value of a land parcel in the neighborhood per square metre in Naira BA = the total developed floor area of building on the plot of land in square metres, or the total floor area of apartment unit in a building where apartment has a separate ownership title BV = the average value of medium quality buildings in the neighborhood per square metre in Naira. PCR = the property code rate for the building which accounts for the building being of higher or lower value than the average buildings in the neighborhood and which also accounts for the degree of completion of construction of the building. (LA x LV) + (BA x BV x PCR) = the assessed value of the property. The law also provides that the annual charge rate for each financial year will be set by the commissioner of Finance and published in Official Gazette and widely read newspapers in the State, and the value property code rate set and be revised by the commissioner with the approval of the House of Assembly. However the law exempts some properties from payment of Land use Charge, such properties are those owned and occupied by religious bodies and used exclusively for public worship or religious education; cemeteries and burial grounds; recognized and registered or educational institute certified by the commissioner for Finance to be non-profit making; those used a s public library; those specifically exempted by the Executive Governor by notice published in the State Government Official Gazette; palaces of recognized Obas and Chiefs in the State. In addition partial relief may be granted to a property that is occupied by a no-profit making organization and used solely for community games, sports, athletics or recreation for the benefit of the general public and those that are used for the charitable or benevolent purpose for the benefit of the general public and owned by the state, Local and Federal Governments or non-profit making organization. However, exempted or partially exempted property will become liable for Land Use charge if the use of the property changes to one that does not qualify for exemption or where the occupier changes to one that does not...

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