Following the outcry by affected property owners and other stakeholders over the burdensome nature of the Lagos State Land Use Charge (LUC) and a response by the state government after extensive deliberations with stakeholders on the new rates payable, a major reduction in the rates and as well as waiver of the penalty for late payments across board was effected.
The following are the key changes that came into effect;
The LUC classifies property assessment into three broad categories, Commercial, Industrial and Residential usages.
Commercial properties, which were the main set of property owners that the new rate affected the most, will now enjoy a 50 percent discount, and will be charged at a rate of 0.394 percent as against the initial 0.76 percent per annum.
Industrial/ commercial properties are now assessed at a rate of 0.132 percent of the assessed value against the initial proposed 0.256 percent.
A property solely occupied by the owner for residential purpose was reduced by 15 percent, therefore, such property owner will be charged at a rate of 0.0394 percent, which was initially at 0.076 percent.
While a similar property occupied by the property owner and tenant(s) or third parties will be charged at a rate of 0.132 percent. According to the state government, owner occupier third-party fee is also reduced by 25 percent
It was estimated that the initial increase in the Land Use charge was up 50 percent.
