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SECHOMES:
What is Land Use Charge (“LUC”)?

Land Use Charge (“LUC”) is a Lagos State property tax backed by the Land Use Charge Law of 2018.

• LUC is a consolidation of ground rent, tenement rate, and neighbourhoodimprovement levy.

Is LUC a new form of tax?

• LUC is not a new form of tax.

• The Law backing LUC was first enacted in 2001.

What is LUC based on?

LUC shall be payable in respect of all real estate property situated in Lagos State (“the State”).

What was the rationale for repealing and re-enacting the LUC Law?

• The LUC Law was repealed and re-enacted to address some identified challenges which include:

1. Lack of clarity on the LUC formula to support self-assessment;

2. Obsolete rates which had not been reviewed in over a decade;

3. Need to improve LUC administration efficiency; etc.

• The new LUC Law also provides a robust legal and regulatory framework to support ongoing LUC administration reforms aimed growing the State’s economy.

Who benefits from LUC revenue collected?

• Revenue generated from LUC is shared between the State Government and all the 57 Local Government/Local Council Development Areas.....

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This is another jobless blogger that has been paid to recycle Ambode's recent tactics of extortion, disguised as Land Use Charge. _mtcheew!

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