₦airaland Forum

Tinalex:
I have no probs with all this taxes but after payment what social amenities is derived from it?

Great question.
Be rest assured that the H.E Ambode will provide more infrastructures for the benefit of all Lagosians

walcolm:
@davodyguy,

What's the position of the law on places like oniru who try to collect ground rent from property owners? Is it lawful or the LUC overrides the ground rent they try to collect

They're to pay LUC. By the Land Use Act 1978, all land belongs to the state government

Enumeration and Valuation of all Billable properties in Lagos State for LUC purposes


The LASG under the leadership of His Excellency Governor Akinwunmi Ambode is ready to turnnthings around and allow proper assessment to be done. The anomalies noticed in the previous LUC administration and collection process is about to be revamped. There would be no abnormal billing or improper assessment or 'crazy billing' as the Electricity Distribution Companies are known for.

The H.E has commissioned Registered Estate Surveyors and Valuers about 112 to carry out a proper enumeration, data capturing and valuation of all properties in Lagos State for LUC purposes.

About 700 field personnel would be engaged, that would be going round every day for the next 6 months.

What are they to do? They are to enumerate, capture Data and thereafter carryout professional valuation of all properties in Lagos.
No more over valuation, as professional valuation would be carried out for proper assessment

You're not to pay the valuers a dime, as the government will pay, all you need to do is to cooperate with them when they come and answer relevant questions they may ask.

See the attachment for things to be shown to the field personnel that would be going round.
Exercise starts next week and would end by 31/8/18

Hours is between 8:00am to 5:00pm Monday to Friday.

They would be going round from street to street, ward to ward and Local government to Local government

Who is to Pay LUC? Tenant or Landlord?

See below

LIABILITIES

The ‘owner’ of the property has the duty to inform the Commissioner of the loss of exempt status or risk a penalty of up to 3 times the exemption in issue. : The owner of the Property

Under the new law, persons liable to pay LUC have been extended to include occupiers holding long leases of 10 years and above. This, on the other hand, excludes tenants with short leases: By law, any lease that's more than 5 years is to be registered, as it temporarily transfer ownership from the landlord to the tenant. If you're a beneficiary of a long lease in excess of 10yewrs, you the tenant will pay the land use charge. But if you're a yearly tenant, it is the responsibility of your landlord


The term ‘Occupier’ has also been defined in the new legislation to include persons unlawfully occupying a property.: If you're staying in a property after you've been given a quit notice or you unlawfully hijacked ownership, the law sees you as an occupier and you'll be liable as applicable by law

Please take your time to understand the reliefs that are available to payers of LUC.
I'll also break it down for you

•The reliefs include:

a)General relief of 40% (applicable to all property liable to pay LUC); This means that As soon as your property value has been determined, take out 40% of the value and you're left with only 60% of the market value to be assessed for LUC. Worked example. A property located at Number 12, Ogudu road has been valued by Professional Estate Surveyor and valuer as say N10 Million naira (Land +Building) The law says that your N10million value goes down to N6million. It is on that N6million that you'll be assessed. For annowner occupier whose property is N6million naira your annual land use charge will be about N15,000 for a whole year. Your LUC is less than amount you spend on fuel for 1 month

b)Specific reliefs applicable to property owners and leases of 10 years and above for:

I.Pensioners (60 years and above)–100% for owner-occupied property: Your Father or Grandfather who owns a house and he's a pensioner and also above 60 years, he pays nothing. If the property is in Ikoyi and worth N500, Million, Papa is 100% free from liability


II.Persons with disability–10% for owner-occupied property: In addition to the 40% instant reduction of your market value, if you're disabled, you get additional 10%. Let me explain. Market Value is N10 Million, you get (40%+10%) relief. Hence, as a disabled, you're left with 50% of the value of your property, which is N5 million. So the LUC for a disabled Owner Occupier is N12,800 for the whole year. Less than Dstv or Fuel money

III.Aged persons(70 years and above) –10% for owner-occupied property: This implies that your Father or Mother that are not pensioners but private citizens but own a house, they'll get 10% in addition to the 40% automatic reduction. Same example above applies

Market Value is N10 Million, you get (40%+10%) relief. Hence, as an old man private citizen aged 70, you're left with 50% of the value of your property, which is N5 million. So the LUC for a disabled Owner Occupier is N12,800 for the whole year. Less than Dstv or Fuel money

IV.Age of property–10% for property aged 25 years and above: This is also 10%+40% relief. If you've built a house and the house was built say in 1980, you get 50% relief. Same N10million analogy applies

V.Long occupation by owners–5% for 12 years and above: This means if you've been residing in your house as owner for 12 years, you get 5%+40% automatic relief. Hence, the value of your property drops by 45%

VI.Federal and other State Government property–20% for non-revenue generating property: This covers the likes of TBS, National theatre etc

To better understand the above reliefs, you need to engage a professional Estate surveyor and valuer to help you

Some critical aspect of the 2018 Law is explained below

THE EXEMPTIONS

The exemptions include:

(a) Property owned and occupied by a religious body and used exclusively as a place of worship or religious education; This means your churches and mosques or Shrines are exempted, but not a hospital built by a church and they charge patients thousands of Naira. Not Private Universities where they charge millions as School fees. Not event centres and halls owned by churches or mosques that people rent and paid income to the church

(b) Public cemeteries and burial grounds as well as property used as a registered educational institution certified by the Commissioner of Finance (theCommissioner) to be non-profit making; This doesn't protect Private universities or Schools cos they are making profits. Burial grounds like Atan Cemetery, Ikoyi Cemetery, Ikorodu cemetery are exempted. But Victoria court cemetery, Ebony Vaults and Gardens and other private cemeteries are to pay Land Use Charge. They don't allow you bury the dead for free, but you pay millions for burials, hence they're to be taxed.

(c) Palaces of recognized traditional rulers in the State; Oba's Palace are recognized Baales palaces are exempted. But not a chief's Palace. A chief would pay Land Use Charge


(d) Any property specifically exempted by the Executive Governor by notice published in the State Official Gazette.

In my next thread, I'll elaborate on the enumeration and Valuation that's commencing next week.

Ahead of the valuation, the attached flier shows what home owners you get ready and present to the valuers when they arrive.

As posited feel free to ask any question regarding the land Use charge and I'll oblige you with response.

It is better to get information from the right source rather than from rumors

Sequel the the thread that made the front page last week, wherein I promised to create a topic to address the issue, I've decided to do so in series. On this thread, we would try to address critical issues regarding the LUC and how it affects you.

What is property tax? According to wiki: A property tax or millage rate[1] is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located

The above definition tells us that it a tax on real estate asset, let me say tangible assets, like your land and all improvements on that land.

What is Tenement rate in Nigeria, we came to know the property tax as tenement rate, which could mean the same thing. In other country, they call it property tax, but in Nigeria, it was known as tenement rate. The local government do collect it prior to 2001 in Lagos State, Hence its a local tax by the local administration on all properties at the province or local level to generate income for the government, in oder to provide infrastructures.

What is Land Use Charge? As posited above, we had the tenement rate and some other property based taxes that are to be paid by owners of land (not tenants). Bola Ahmed Tinubu became Governor of Lagos State in 1999 and realized the poor collection of the tenement rate and inability of the local government to point out strategic programs that the funds were channeled to. Remember, we were under the military rule until 1999, hence the corruption was so obvious.

BAT then created the LUC, which unified the entire taxes to be paid on land as the Land Use Charge. The land Use charge is the combination of tenement rate, Neighborhood charge and Ground rent. Let me explain what Neighborhood charge and Ground rent means

Tenement rate: Tax payable annually on your landed property in the area it is located, to local government
Neighborhood Charge: Payment of tax for the uplift of the neighborhood where your property is located
Ground Rent: Remember the land use Act of 1978 vested the ownership of all Land to the State government, hence everyone is a tenant with the government for 99 years. Remember also that your C of O is only for 99 years max, hence the rent you pay Government annually is called Ground rent. Payable to the state government

The above 3 distinct taxes were harmonize by BAT as one and the responsibility of collection was placed in the hands of the state government, who will then spend the money on the entire state for the benefits of all. For instance, Instead of the local government chairman to collect tenement rate on a property worth N5 billion naira in Ikoyi and spend the money on frivolous things like boreholes etc the state government will collect and spend on meaningful projects spread across the 20LGAs and 37 LCDAs

In 2001, BAT came up with the Land Use Charge Law No. 11 of 2001 of Lagos State. The Land Use Charge Law which is applicable to all properties in Lagos State as a unified property charge, came into operation on the June 22, 2001 (“LUCL”).

The LUC has been there since 2001 and all forms of tenement rate was no longer collected after the unification. But many Nigerians do not know. Nigerians, I mean all of us, cos Igbo's, Yoruba's, Hausa, TIV, American, British, Lebanese, Indian, Ghanians etc own properties in Lagos. Many ous do not pay taxes at all on anything. This is the truth.Up till today March 3rd, many of us don't even Pay at all, but we love to criticize the government.

Remember, Tax is a civic responsibility. Go to UK, ask all the players in the EPL how much they pay as taxes. It's up to 30% of what they earn weekly, hence the UK is progressing cos of successful tax administration.

Conclusion, LUC had been with us since 2001, but since we don't pay, we have no idea that it exist. The Government of BAT and Fashola didn't do much to enforce payment and since 2001 to amendment or increment and less than 300,000 properties pay LUC in Lagos State out of over 2,000,000 houses that we have in the Lagos State.

LUC should not be confused as income tax, VAT, Capital gains Tax, Capital Transfer Tax, consumption tax etc.
LUC is tax payable by a Landlord. The person who has money and decided to buy property with his money. The government will tax you and use the money to provide houses for others. Houses are not only for the rich. The poor too deserves to own properties.

I am privileged to have traveled to some countries and did enquire how they do it.

In South Africa, UAE, England, USA, Canada, Japan, Australia, Ethiopia, Ghana etc all these are applicable.

If you don't own a property, you're not to pay Land Use Charge. It is an ownership tax.

Tell your landlord I said so and it is backed by Law.

All tenants should relax, as this is not for you.

As a private citizen of Nigeria, residing in Lagos, I pay the following

1. Income tax monthly to State government
2. VAT to Federal Government
3. Consumption tax to state
4. LUC to state government cos I own properties

These are applicable in most countries that I've visited.

There are other taxes that has nothing to do with real Estate eg
Consumption tax
VAT
Income tax
Stamp duty
Capital transfer tax etc

I created this thread to educate us on the history of LUC, in order to educate people and would be creating other parts later this month to address

1. The 2018 LUC law
2. Collection
3. Proposed Valuation
4.reliefs provided
5. How the money would be spent.

Feel free to share, just acknowledge the source and not plagiarize.

I am opened to answering any Question at all, pertaining to the LUC. The various LASG officials are interested in how Lagosians feels about this subject, hence they paybvery serious attention to Nairaland, based on my discourse with them yesterday

The moderators (Seun Mynd44) should do the needful by posting this important thread for all to see.

Itesiwaju Eko ati Nigeria, lo je wa logun.

God bless you all

The best I got all day with 2*300 watts Panel

30amps dropping on my two batteries

tellwisdom:
Burj alrab??...liar...u wey dey one hotel for Union

Union Ko? Etisalat Ni

She's rich enough to stay in Dubai Marina or Deira City Centre

Burj Al arab is a 7 star hotel.

Very expensive

greggng:
New okooba close to fagba junction. Just 10minutes drive to that abuse Egba bridge

It would not be much. Minimum is 5000 naira for a whole year. Not up to money for recharge card

greggng:
In have a family friend living there. Just give me an average. Cos anything bigger than my target or what I can afford will force me to sell that house. You can't even imagine the road that leads to the house is terrible without any gov't presence to even grade it. Is not a wise payment to make if gov't doesn't show any presence there

Which area in Lagos?

greggng:
My property is a 3bedroom bungalow in a quarter plot. How much do you think the land use charges will be?

A proper Valuation would be done.
We would visit your house soon. If your owner occupier, it would not be much.

VULCAN:
This will increase some rents by as much as 50%. If only Nigerians were not as docile as sloths, the government would think twice before multiplying hardship on people

Not necessarily.
There are reliefs.

The rate being charged is one of the smallest in the world.

In NYC, it's about 1.2%, whilst in Lagos, it's less than 1%

Hello guys.

I'll do an elaborate thread on the LUC and educate you all.

My firm has just been appointed to carryout valuation and enumeration of all billable properties in Lagos, commencing from 1st of March, 2018.

You'll be seeing Estate Valuers in your neighborhood and the exercise is mainly to correct the anomalies on the LUC.

The government means well.

I'll do a thread on this.

sinistrian:
I have a 1 month old 24V 3kva inverter sitting around that I could sell for a giveaway price, if you're interested:
https://cloudenergy.com.ng/products/3kw-home-inverter I took it out and replaced with a 48V Hybrid, and it's been sitting in a box since

I hope it is within my budget.

How much?

DMerciful:
I will recommend you add 2 more panels so that you do 2*2 configuration. if I assume you are harvesting 50% of installed capacity averagely, current will be 1200*0.5/26 =24A. Where 26 is d battery voltage and 1200 is the array capacity

earthrealm:
ur 1000w inverter is 12v, i can deduce. so ur batts are in parallel
600/12 = 50amps max, factoring in losses and inefficeincy. gives u 32amps
so going for 24v inverter, ur batts would now be in series , so 900w/24 = approx 37amps or so.

you might think its small. but its quite huge.

ur old setup is 12v x 400ah, at 32amps harvest...you need about 13hrs for ur bank to be full-- if empty

ur proposed setup 24v x 200ah, at 37amps harvest.... u need about 6hrs for ur bank to be full--if empty.

hope you understand my rough analogy/calculation

Thank you very much Guys.

God bless you really Good.

I am expecting some funds by Mid march, 2018

I will Get 2 more panels to now give me 4* 300= 1200watts Panels
Get the 2000w Inverter

I'll update the house.

Hopefully, if God answer Prayer on time, by March 15th, I should have done it

Hello my people.

I need advice

I want to change my inverter, whilst also being conscious about price.

I've been offered Microteck 2kva Pure sine wave inverter at a good price, which is 24v and better than my 1000watts china Inverter at home now.

I also intend to add one more panel, to take my system to 3*300watts Mono panel from the 2*300watts

CC remains 40amps Mppt

Like how many amps will drop into the batteries after upgrade? Max presently is 32amps that drops with strong sun.

Thanks my people

Herdsmen:
Senior man...

Afons will call him ex militant..

But will close eye on their drug lord cum criminal.. shamelessly parading the nation in the name of reconciliation of fellow criminals..in the same organization.

Noble man.. anye oo!

Difference is that no one has found him guilty.

He also was not bursting pipelines and kidnapping like Ateke Tom did

Wise up and get a functional brain

ItsTutsi:
man this codeine has made me comprehend nothing on this right up

Will you make it till tomorrow morning?

No one they said that flex condoms have always been disappearing without trace

Even those that looted the Treasury do not spend money like this.

Dangote, Otedola and Folorunsho Alakija don't do this.

This guy must be in one form of cult or the other.
I can't remember Bill gates or Carlos Slim showing off as much as this guy who doesn't even own 1/4 of what they've.

zeestone99:
windmill sir

Is anyone in Nigeria using that 'fan' like system at the moment?

Hello team.

Found this, but not sure of it usefulness

DMerciful:
Funny when at investment stage the wifey will be like why are u spending so much. But at the benefit stage they can't do without it

Hahaha.

It shows you're an experienced Married.

When I started satellite TV stuff, it was wahala.
Come see my collection of decoders, you go fear. I have a unique way of describing my house. I'll say its the only house you'll find a 3 90cm dishes and one massive 2.6m mesh dish in my entire estate. My wife almost reported me as being wasteful. But now, she watches AFN, which is not available on DSTV and other interesting stuffs

I do remind her of how she criticises me each time I'm spending.

Na our work ooo. Na we say we're tired of single living and go marry

DMerciful:
Led TV and fan should not be more than 70w....mine is 42inch led TV and it's 50w and fan 20w

OK. May be I was wrong.

At 70watts consumption per hour vs 12.5amp dropping now, I may still be covered

dejidotun2000:
It depends on your load.
If you panels are supplying 4A @ 24V, that's 96Watts.
Let's say your load is 100W, the panels will supply the 96W and the extra 4W will be taken from your battery.
In essence, your battery isn't charging.
Note that the self consumption of your inverter wasn't factored into the analysis.

My current system is 12v and load as I type is 150watts. Put off the fan cos weather is cold

DMerciful:
Davodyguy,
You are right the sky is very cloudy and I am only getting 232w fortunately my 'convenience loads' are less than 180w so net my battery is charging a little.

Look at it this way, you a filling a bucket at a volume flow rate of 10m3/s and draining at 15m3/s....net you are depleting your reserve. For mains, the inverter takes enough power from the grid(we can say the grid power is unlimited comparatively) to power the load and charge the batteries.

I have an analogy meter that tells me if the batteries are being charged or discharged and by how much depending on the needle direction.

For light loads like TV, fans and lights, I use a small inverter of less than 20k but very efficient while I use my mustpower 3kva for heavy loads like AC, pumping machine, iron when needed.

See pics below

Wow. Yours is super. I'm currently doing 200watts. Its safe to conclude that I'm losing batteries, cos the 10amps can't do anything.

My wife is on my neck and since we work to take care of the family.

If the batteries start showing, signs of being low, I'll put on the gen.

My aim is to increase my system by end of march, 2018.

I'll get 2 more 300 watts panels to take my system from 600watts panels to 1200 watts panel

NiyiOmoIyunade:
If solar is your only power source and your loads exceed the 3-4amp solar charge current cominng in then your batteries would start draining since they must make up the power difference.

Even if there were no loads 3-4amps is very small to charge a battery so I would say wait a while for the sun to come out later in the day before you start putting on your appliances.

Haha, this response came late o.

Madam was on my neck and was forced to put it on since 11:00am.
Now, what's dropping is 11.5amp from Panel.
Also, the transformer in the neighborhood is faulty, hence I'm dependent on Solar during the day and Gen from 7pm till 11pm

Load on LED TV and One fan, about 200 watts (TV 150w + Fan 50 w)

linearity:
GOP

Na dem dey do this kind thing