The biggest news in Lagos is the Land Use Charge Law 2018. The simplest summary is that LASG is going to charge property owners between 200 and 500% more and it will mean a hike in rents for Lagos tenants. thisislagos.ng looked at the law and distilled 9 key points from the law to show you, Dear Lagosian, how it affects you and I. Don’t worry, Ambode has said he might review it.
- What exactly is happening with the land use charge?The Lagos State Government wants to increase Internally Generated Revenue (IGR) from the N340bn it made last year to N720bn this year. That is an extra N380bn or a 47% increase. So, to hit their target they are increasing taxes, levies and charges. They have repealed the Land Use Charge Law of 2001 and replaced it with a new land Use Charge Law thus giving the planned increase legal backing. The Lagos state government believes many people are paying charges that are disproportionate to the value of their properties and this has been going on for years
- Why is it my business?Well, it is your business if you own property in Lagos state because every property owner must pay the Land Use Charge. But even if you don’t own property, chances are that your landlord will pay a higher sum this year and then will most likely increase your rent. So, dude it is your business.
- By how much will land use charge go up: According to the LASG, properties would be valued and the appropriate Land Use Charge value arrived at. Folks should expect a hike of between 200 to 500%.
- Apart from the hike, what is different about this new land Use Charge Law?Unlike the old law, this new law comes with a valuation of your property. Now, assessments are based on ‘market’ or commercial value of land and sundry improvements made to it.
- Is there any incentive for paying?Yes, if you pay early your premises won’t get sealed off, dumbo! But seriously, you can self-assess your property then hurry to the land Use charge office and pay. Those who do ITK and pay early will get a discount. Don’t say thisislagos.ng has never helped you o.
- What if I refuse to pay?Well, you will pay finally because Ambode must make that N720bn. First they will seal your house. Then you could pay as much as N250,000 in penalties up from the old N100,000. But if you really, really don’t want to pay, you can go to court and the case can drag on for years or maybe months. Mr. Ayodele Hamzat Subair, the Executive Chairman of LIRS in an interview monitored on AriseTV, says you can appeal the charge if you don’t want to pay the new rates. According to him “The good thing about this Land Use Charge Law is that everybody has the right to appeal. You can appeal it if you feel it is an unjust amount. There is a help desk at the Lagos State Ministry of Finance and and they are willing to listen to everybody.” Well all I can say is good luck with that. You go queue sotay you go tire!
Additional information courtesy http://nigeriarealestatehub.com