In a move to jack up its revenue, the Lagos State Government, through the State’s House of Assembly is proposing a harmonized bill on Land Use Charge based on market value in the state.
If the bill scales through the State’s House of Assembly and eventually passed into law, it would repeal the Land Use Charge Law 2001, while all other rates on land cease to operate except the Land Use Charge.
Giving assurance that the proposed harmonized bill on Land Use Charge would be based on market value, the lawmakers told stakeholders that it would be beneficial to property owners. The law seeks to harmonize Land Rates Law, Neighbourhood Improvement Charge Law and Tenement Rates Law.
Speaking at a stakeholders’ meeting on the Land Use Charge (Repeal and Re-Enactment) Law, 2017 yesterday, Acting Chairman of the Adhoc Committee on Finance in the Lagos Assembly, Hon. Oluyinka Ogundimu, disclosed that the new law would correct some wrongs in the system. According to him, a situation where some houses in the state still pay N1, 500 as land use charge was not palatable.
“We have to harmonise some bills to form this new one. With the new law, the local government will not come with a bill, while the state government would come with another one on property. We want everything to be harmonized and make it convenient for the people. We have ensured that we will consider the market value of the houses”, he said.
The lawmaker added that some of the houses are close to the market value, while others are far from it. He also assured them that what would be given out would be the value of the land and the building and the rate would be determined by the government. “What we will have will be the market value and this has been reduced by 40 per cent.
We called the public hearing to hear the opinions of the people. We will look at their position papers,” he said. While commenting on those exempted from the charge, Ogundimu said; “Religious bodies would not be affected, but if you go commercial like running a school, you
