LAND USE CHARGE: LSG GIVES CLARITY AT A STAKEHOLDER MEETING …REASSURES LAGOSIANS ON EASY ASSESSMENT OF CHARGES

Posted on March 10, 2018 || By: Global News
The Lagos State Government on Friday, March 9, 2018, further clarified
the rates for the newly reviewed Land Use Charge Law of 2018 noting that
payers can compute the amount of charges payable on their respective
properties themselves.
Speaking at a stakeholders’ forum organized by the Lagos Chamber of
Commerce and Industry, LCCI, the State’s Commissioner for Finance, Mr.
Akinyemi Ashade said the Land Use Charge law is aimed at entrenching a
regime of self-assessment, which would allow property owners to make
their own calculation and know their rate with the help of professional
valuers.
“The Land Use Charge law institutes the regime of self-assessment. The
intent of the reviewed Law is for Lagosians to be able to compute the
amount payable on their respective property by themselves.”
“You don’t have to wait for demand notices before your pay your charges,
you can calculate it yourself, and engage us. You can make your payments
voluntarily.  Do it yourself, let’s dialogue and let’s get the basis
right.”
The Commissioner further gave examples under three categories recognized
by the law. First of which is that, “If you are a landlord and you are
the only one living in your house with your family (No tenant), your
annual fee is 60% of the value of the house × 0.076%.”
“For instance, if your house is valued at N20million, your fee is 0.076%
of (60% of N20m) = 0.076% x N12m = N9,120.00 per annum”
“Secondly, If you are a landlord living with your tenant in the same
building value of N20million, you will pay 0.256% of (60% of N20m)
=0.256% ×N12m= N30,720.00 per annum.”
“Thirdly, If you rented out the house to tenants only and you don’t live
there and the house is worth N20million, you will pay 0.76% of (60% of
N20m) = 0.76% of N12m = N91,200.00 per annum.”
“The Law does not tax the market value of properties. It gives a general
discount rate of 40% to all property owners in the state. The Land Use
Charge Law is holistic and fair to everybody. It is quite
discriminatory. It is not one cap, fit all. Market value of properties
in Ikorodu and Ikoyi can never be calculated as the same.”
According to one of the participants at the stakeholders’ meeting, Mr.
Shadrack Bayowa, the Managing Director, Hinges Construction and
Properties Limited, the meeting has cleared the grey areas on the
formulae used in assessing the Land Use charge as well as whose shoulder
lies the responsibility of valuation.
He could not hold back his impression of Mr. Ashade who he described as
a thoroughbred professional and a brilliant public officer who was calm
and, patiently answer questions in spite of the initial hostile
dispositions of some participants. “I am more comfortable now with the
new law as it is reasonable and progressive”, he concluded.
In his own remarks, the President of the Lagos Chamber of Commerce and
Industry, Mr Babatunde Ruwase noted that one of the key tenets of
democracy is inclusiveness, participation and dialogue. He commended the
Lagos state government for being receptive to dialogue.
“As business community, we appreciate what the state government has been
doing, especially the investment in infrastructure and security. We are
therefore willing and ready to pay our taxes. Indeed, over 90% of the
current IGR of over N300bn generated in the state is coming from the
private sector. We appreciate the need to even do more.

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