Akinwunmi Ambode
LAGOS State government has canceled the 2018 Land Use Charge, LUC by immediate past governor, Akinwunmi Ambode, and reverted to pre-2018 Land Use charges prior to his administration.
The Commissioner for Finance, Rabiu Olowo, announced this at a press briefing on Wednesday adding that the state government also approved a waiver on the Land Use charges for 2017, 2018, and 2019 which is totaled at N5.6 billion.
The state’s LUC is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighbourhood Improvement Charge and Tenement Rates Laws of Lagos State.
Recall that in 2018, Ambode’s administration increased the charge on a property solely occupied by the owner for residential purpose to 0.076 percent per annum from 0.0394 percent.
The rate for an investment property fully occupied by tenants or third party (ies) was increased from 0.394 percent per annum to 0.76 percent. However, after many residents opposed the increment, the rate for commercial properties was reduced by 50 percent and 25 percent for owner-occupiers.
“In 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this shock had a sporadic increase in Land Use Charge payable by property owners,” he said.
“In view of the aforementioned, the current administration decided to review the Land Use Charge law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation,” the commissioner said.
The government also waived penalties for land use charge for 2017, 2018 and 2019, which according to the Commissioner translates to a loss of revenue amounting to N5.6bn.
However, the government said the reintroduction of the 15 per cent early payment discount, an additional COVID-19 incentive of 10 per cent will be granted on the total amount payable.
“This makes the total discount for early payment 25 per cent if payment is made before the due date,” he said.
“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 per cent and 20 per cent special relief for Vacant properties and Open empty land, respectively”, the statement read.