The Lagos State Land Use Charge (LUC) is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State.

The Land Use Charge derives its legitimacy from the Land Use Charge Law No. 11, of 2001. It was designed to help the government generate additional revenue needed to develop the state in the light of increasing demand and for provision of urban and rural infrastructure and other expenditures.

The LUC is an annual charge rate expressed as a percentage of the assessed market value of the property and empowers the state government to vary between owner-occupied property and other property, as well as residential property and commercial or revenue generating property.

This variation further includes property for physically-challenged persons and those who have been resident at the same location for at least 12 years, minors; retiree owners of property and occupiers on the one hand, and active owners and occupiers on the other.

In general, the LUC Law attempts to consolidate and simplify the calculation and collection of land charges and rates in Lagos State.  The risk is that it may also have materially increased the same and this is likely to have an impact on the property market.

The intentions of the Legislators for the enactment of this legislation are to:
a. Simplify the process/procedure for assessment and payment of property tax;
b. Generate additional revenue for the State through effective assessment and enforcement.