Lagos State's total annual revenue (IGR + Fed allocation etc) is around USD2 billion per year, which I think is way too low to deal with the myriad problems in the State, not least the massive infrastructural deficit.

I am surprised that Lagos State does not tax property on an annualised basis. Perhaps it does in some areas, but I've never received any tax demand on my property. As a house owner, I would happily pay some form of additional tax (perhaps 10% of my annual rental income) as my contribution to the coffers of the state.

Yes, we know there is corruption and waste in the system as it is, but we also know that the Lagos State govt is making some genuine progress. Ofcourse, we need to continue to seek greater accountability of govt.

Although the current revenue profile of the State is superior to most other States, I believe more revenue is required to execute the sort of projects that will significantly improve living standards accross the state.

Life need not be about 'me' me,' how about 'us' 'us,' - ie the those who have a little should contribute some of their lots to making the wider society better.

I know people dont like paying taxes, but how else are we going to get out of the current quagmire unless we all become a little less selfish?

I swear I was thinking same!! But here is what I think,

If you own a property for your own use, then maybe you should be exempt from taxes or just pay a one time tax just like sales tax etc,

Now, if you have a house and you gave it out for rent, that is business and you should pay taxes on each year's rent you collect!!!!!

Fashola need to stop letting "landlords" get off easy!! Yearly rent should be taxed!!!

About spending the taxes, To put it to good use, the taxes collected should be used for maintenance of the area it is collected in, The more people settle in your area, the more developed your hood will be,

This could be used to estimate population density if we properly keep records, Maybe I'm high again!!!

edo.girl:

Lagos State's total annual revenue (IGR + Fed allocation etc) is around USD2 billion per year, which I think is way too low to deal with the myriad problems in the State, not least the massive infrastructural deficit.

I am surprised that Lagos State does not tax property on an annualised basis. Perhaps it does in some areas, but I've never received any tax demand on my property. As a house owner, I would happily pay some form of additional tax (perhaps 10% of my annual rental income) as my contribution to the coffers of the state.

Yes, we know there is corruption and waste in the system as it is, but we also know that the Lagos State govt is making some genuine progress. Ofcourse, we need to continue to seek greater accountability of govt.

Although the current revenue profile of the State is superior to most other States, I believe more revenue is required to execute the sort of projects that will significantly improve living standards accross the state.

Life need not be about 'me' me,' how about 'us' 'us,' - ie the those who have a little should contribute some of their lots to making the wider society better.

I know people dont like paying taxes, but how else are we going to get out of the current quagmire unless we all become a little less selfish?

The environment is not yet conducive for taxation of properties,The country is import dependent and it as affected housing prices and deficit of housing supplies,without a mortage system to help the poor,house rent will increase due to additional charges,land charges already increaes prices of new homes in lekki and other areas.You are selfish and not looking at the larger picture.some people dont work ,and are just rent seekers,this will not help a developing country,you need to produce.

Edo_girl,

You are looking at it from a foreign understanding. First, accept that land use act and statutes in African concept is different from a Amerian r European concept.

I will address specifically what I know too be true in Yorubaland.

Traditionally, land in Yorubaland has always belonged to the landowners - family holds; natives! The Kings were not land owners, similarly under this borrowed system of governorship, land still belong to families, not government.

However, when buying and developing a land government collects an upfront tax in form of fees, levies, licence, deeds, and so on.

The property tax you mentioned is a recurrent fee by a home owner to the county government. This kind of fee is unecessary in Yorubaland by virtue of land ownership which I described already.

Now, having said that, your idea will be a good means of generating revenue for the government but it should be narrowed and limited only to commercial land acquisition - like factory, farmland, multi-occupant rental property (office space or flat rentals) and so on.

In that case it will also be a good point for deriving a more accurate tabulation for GDP.

I am not sure though that the govt is not already taxing commercial use properties.

My guess is that we don't have a proper administrative infrastructure/system to successfully impose such a tax.
I may be wrong though.

very noble request. i represent the lagos state govt. i will send my bank details to your inbox so you can pay your taxes.

Negro,

I agree with the suggestions that owner-occupied properties may be considered for exemption, particularly as many of these people are either elderly, retired or generally earn little or no income.

But I dont understand the Yorubaland context. I am not asking that undeveloped land be taxed, nor are you entirely correct that somehow land ownership rights in Yorubaland are different from what they are in other parts of the country.

Under the Land Use Act, all lands within Nigeria's territorial boundary are vested in the state. If you buy a land today and obtain a C of O, whether you are in Yorubaland or Kano, you are no more than an assignee. The legal owner (freehold) of the land remains the state. In the tru sense, you never actually own land in Nigeria, whether you are a king, commoner, Yoruba, or Efik.

Back to point, I agree that rented property should be the focus of such tax.

Negro_Ntns:

Edo_girl,

You are looking at it from a foreign understanding. First, accept that land use act and statutes in African concept is different from a Amerian r European concept.

I will address specifically what I know too be true in Yorubaland.

Traditionally, land in Yorubaland has always belonged to the landowners - family holds; natives!  The Kings were not land owners, similarly under this borrowed system of governorship, land still belong to families, not government.

However, when buying and developing a land government collects an upfront tax in form of fees, levies, licence, deeds, and so on.

The property tax you mentioned is a recurrent fee by a home owner to the county government. This kind of fee is unecessary in Yorubaland by virtue of land ownership which I described already.

Now, having said that, your idea will be a good means of generating revenue for the government but it should be narrowed and limited only to commercial land acquisition - like factory, farmland, multi-occupant rental property (office space or flat rentals) and so on.

In that case it will also be a good point for deriving a more accurate tabulation for GDP.

I am not sure though that the govt is not already taxing commercial use properties.

why will you tax factories and farm land ,you import food into Nigeria,you cannot feed yourself,you import almost everything and you still want to chase and close down factories.

Jenifa_:

My guess is that we don't have a proper administrative infrastructure/system to successfully impose such a tax.
I may be wrong though.

Lagos State has a good record of computerising large scale processes/data. I don't think this will be an obstacle.

The only reason I can see for them not introducing the tax yet, is political. It could prove very unpopular.

buzugee:

very noble request. i represent the lagos state govt. i will send my bank details to your inbox so you can pay your taxes.

Good one

what about the land use charge that was planned.Politicans have real estate assets and they cannot start what will affect them,since the more you have the more taxes you will pay.

edo.girl:

Lagos State has a good record of computerising large scale processes/data. I don't think this will be an obstacle.

The only reason I can see for them not introducing the tax yet, is political. It could prove very unpopular.

that makes sense

olas2u:

what about the land use charge that was planned.Politicans have real estate assets and they cannot start what will affect them,since the more you have the more taxes you will pay.

I wouldn't be as cynical as that. Going by your logic, they would've blocked other land/property-related fees/charges that are currently in operation.

<quote>

nor are you entirely correct that somehow land ownership rights in Yorubaland are different from what they are in other parts of the country

</quote>

I did not specify on other parts of Nigeria. I made reference to America and or Europe.


The land act that is empowered to the state is actually an indirect endorsement. At the state level, for instance in Lagos, the govt cannot just give you land. The state did not own land, families own land. Each native family of lagos has a ward and head whereby such matters are negotiated with the state.

Say for instance you want to buy land in Isolo. Yes, the state govt is issuing the formal papers but a family in Isolo is transferring the land property.

The paper bureaucracy is a front end middle-man role for the physical land transfer. The purchaser may or may not deal directly with the actual land owner.

That front end formality in itself is the tax aggregation.

Does it even have the right under the constitution? Constitution leaves very little room for states to tax, I thought.

You are right though, $2 billion isn't enough.

@ Poster

Where is ur area? probably the alausa guys hasnt gotten to your area yet. My mum's properties in Ikosi Ketu are being taxed yearly. She received a demand earlier this year and she went to Alausa to pay up. she did say that quite a lot of people were there that day.

You're inviting thieves to come and steal from you, just because it's done abroad.
You can just calculate what the property tax should be and donate it to the FIRS.

[size=18pt]
IKOYI, VI and Lekki should bear the brunt of such Tax not Mainlanders.[/size]

Seun:

You're inviting thieves to come and steal from you, just because it's done abroad.
You can just calculate what the property tax should be and donate it to the FIRS.

Lol. Good that you edited your post. I guess you are still a bit peeved from your previous interactions, hehe

Actually, you're supposed to pay a 10% tax on every rent you collect. It's called the withholding tax.

Roflmao. This made the front page. Look at how Seun titled it:

"Self-styled Property Owner Wants To Pay More Tax"

@edo.girl: It appears that your caustic tongue has made you a foe

Good one, especially as people, naturally, dont want to pay tax.

@9jaganja, gentleman I feel you. Whatever is making you high, keep taking it as there is a positive outcome from it. You made a very opiniated point there.

@Negro_Ntns

You said the right. This is a reasonable contribution. I believed that the man who wants the government to Tax home owners is part of the system so that he can get a way to eat/steal and now divert money to be collected. Nigerians have ways to create a way to make money to the detriment of the populace. Let the person who wants government to tax him to go to hell and roast with the government.

These are individuals that will hide under an umbrella and take an advantage of people who suffered to build a place of their own. I own my own property and paid through the nose to acquire relevant papers. Government don't create an avenue for her citizens to own property. Let them tax properties used as companies and not individual houses. If they start this now, I will tell you that one day, they will come and repossess your property saying that you failed to pay tax on the said property for years and as a result, luck up the place and throw you out. This is nonsense.

They never helped you to become somebody in life. You suffer to build house and an iddio.t will come out as Tax collector to harass you.

I will send the Tax collector to hell if they try this nonsense. Land belongs to families here in Nigeria. Not government. Government officials are made up of executive pen robbers.

@Seun,

Which kind of 10% witholding Tax Seun? Have they been able to pay Pensioniers in Nigeria being legitimate money of theirs witheld by government? These men who suffered for this country end up dying while queing up to get their pension stippens? This country is wicked. Let them and you clamouring for 10% witholding Tax go to hell.

Seun:

You're inviting thieves to come and steal from you, just because it's done abroad.
You can just calculate what the property tax should be and donate it to the FIRS.

Still waiting to read an intelligent post from you on this site. Looks like it's going to be a long wait.

ekt_bear:

Roflmao. This made the front page. Look at how Seun titled it:

"Self-styled Property Owner Wants To Pay More Tax"

@edo.girl: It appears that your caustic tongue has made you a foe

Can you believe the muppet.

Actually everyone should pay taxes; individual or commercial or rental property. Property taxes should be taxed based upon the valuation of the bldg involved. If an individual has a home (for personal and family use), and the house is worth $30,000, then a 3% tax for instance will apply but if your house is worth $300,000, that will push you into a higher bracket say 5% because you're more likely to earn more than the other brackets. Same rules will apply to rental and commercial properties.

I expect there'll be a lot of resisitance to this, since most people don't like paying tax, particularly to corrupt politicians.

I understand all that, but given the scale of the challenges in Lagos and accross the country, we need to look at other ways of raising revenue and move away from the scandalous over-dependence on inadequate oil revenue.

Otherwise Lagos will continue to be unfit for habitation, for many.

manny4life:

Actually everyone should pay taxes; individual or commercial or rental property. Property taxes should be taxed based upon the valuation of the bldg involved. If an individual has a home (for personal and family use), and the house is worth $30,000, then a 3% tax for instance will apply but if your house is worth $300,000, that will push you into a higher bracket say 5% because you're more likely to earn more than the other brackets. Same rules will apply to rental and commercial properties.

Why do you suggest a progressive tax rate here? Just general pro-middle class/distributionist sentiment?

I have no opposition to the tax being progressive btw, just curious.

Also, what happens if me and my buddy go 50/50 on a $300k property? Will we still be in a higher tax bracket?

Yes, Tax is good and as a matter of fact is one of the effective fiscal instrument for revenue generation.

Having said that, in as much as people , most especially someone like me , will love to pay such tax,

We need some form of assurance, i mean commitment on the part of government in form of a working institutional framework
that will guarantee the judicious use of this fund .

Fashola we all know is working but in 5 years time , are we going to be singing the same song about his successor??

As wonderful as this idea is, does the law actually allow for this?

See the relevant section of the law:

http://www.nigeria-law.org/Taxes%20and%20Levies%20(Approved%20list%20for%20collection)%20Decree%20No%2021%20of%201998.htm

3.
Right of Occupancy fees on lands owned by the State Government in urban areas of the State.

So could the state government charge an annual "right of occupancy fee"?