Land Use Charge Lagos Nigeria - Free Land Tax Tips.
Stay Out of Trouble!
Land use charge Lagos Nigeria - All land in Lagos Nigeria and everywhere else in Nigeria belongs to the government. The federal government has some landed property in each state but overall all of the land in each state belongs to the state government.
If you think the government is the landlord, then you're right. The government is indeed the overall landlord because they own all the land.
The Land Tax Amount
What is the value of the land tax?
The land use charge was calculated as 0.375 percent of the assessed property value for one property in Alimosho local government area of Lagos state, as at the time of this writing.
What is the assessed property value of a property?
This is the value the state government places on your property. More often than not, this is lower than the open market value of the property in question.
How is this value calculated?
You will need to ask the property assessors at the land registry for that detail. But since the assessed value is most likely lower than the market value of a property, it is safe to assume that a number of factors have been taken into consideration in reaching this assessment.
What happens is that the Lagos state government sends the land use charge notice to property owners in Lagos Nigeria every year. And the notice specifically mentions that this land tax should be paid within 30 days of the date of the notice.
The demand notice also stipulates the penalty for not paying within 30 days, counting from the date on the land tax notice document. The penalty increases every month you fail to pay until mid year when the penalty is equal to the amount you were billed.
That is, after mid-year, the penalty is 100 percent of the notice amount . . . twice the land use charge you were originally billed.
So, it makes sense to pay the bill as soon as it arrives in your mail.
In fact, the Lagos state government offers about 15 percent discount if you pay promptly before the date stipulated on the land tax notice.
Land Use Charge Debate
Bill payment notices often generate debates. So, you can be sure that the land tax will also generate debate. And people on either side of a debate are often passionate about their opinions.
For example, some wonder why the land use charge is calculated as a percentage of the assessed value of the property and not as a percentage of the rental returns from the house.
The true value of a house is how much rental value it commands, right?
Why not charge the tax as a percentage of rental values in the area the property is located?
The penalty after 6 months of non-payment is 100 percent of the initial bill.
That is stiff!
One more thing.
Will a landlord be required to pay tax on his rental earnings from his property after he has already paid land tax?
Food for thought.
Pay your land tax or the land use charge promptly . . . as and when due.
The government has a lot of muscle and they will not fail to use "the long arm of the law" against defaulters.
So, if you've been defaulting . . . pay up!
Many property owners do not pay the land use charge. And therefore the bill (plus the penalty) accumulates year on year.
If you buy a property where the property owner has not been paying the land tax for over 10 years, that tax can become a sizeable amount. And you inherit that tax amount when you buy the property
Ask for evidence of the payment of this land charge before you finalize a property purchase.
You know what?
You can get a discount off the property value equal to the amount owning as land use charge if you do due diligence in this area.
If you fail to investigate this "small matter", you will be the one to pay when the government come with a vengeance.
P.S: Verify the value of the land use tax for the area your property is located. If you have not been receiving his tax notice from the Lagos state government, then visit the ministry of finance to request your bill. Ignorance is not an excuse in the face of the law.
Share Your Opinion On The Land Use Charge
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