10 Things To Know About The New 2020 Land Use Charge Of Lagos State
Recently, the Lagos State Government reviewed the 2018 Land Use Charge Law (LUC) and came up with a new Land Use Charge Law 2020. Here are 10 things to know about the policy which will affect all landed property owners directly and all tenants indirectly.
1. The new law is a reversion to the pre-2018 provisions. This means that the charges are now lower than the ones provided by the 2018 LUC.
2.By waiving penalties for defaulters between 2017 and 2019 in the new legislation, the Lagos State Government forfeited N5.8 billion.
3. Pensioners are exempted from paying LUC in the new law. The law defines pensioners as “all retirees from private and public institutions in the state or any person that has attained the age of 60 years and has ceased to be actively engaged in any activity or business for remuneration.”
4. Profit oriented Cemeteries, Burial Grounds and Private Libraries will now pay Land Use Charge
5. Penalty for delay in payment has been reduced to 10% for 45-75 days; 20% for 75-105 days and 50% for delays between 105 and 135 days, instead of 25%, 50% and 100% respectively in the old law.
6. If you incite someone not to pay their LUC, you will be fined N100,000, no longer N200,000 as is in the 2018 law.
7. Annual land use charge rates have been reduced by 48%. Owner-Occupied Residential Property, Residential Property (Without Owner in residence), Commercial property (Used by the occupier for Business Purposes) and Vacant properties and open empty Land are now charged 0.0394%, away from 0.76%, while Industrial Premises of manufacturing Concerns and Residential Property/Private School (Owner & 3rd Party), will pay 0.132%, reduced from 0.256%.
8. Land used for agricultural purposes will be charged only 0.01%, reduced by 87% from 0.076%
9. The 2020 LUC Law introduced a 10% and 20% special relief for vacant
properties and open empty land, respectively.
10. If you pay early, you get 25% discount!
Read full guideline here: