On June 22, 2001, a new regime of real property taxation commenced in Lagos State with the Land Use Charge Law, No. 11 of 2001 (the “Law”). The stated objective of the Law is to generate additional revenue via taxes to contribute to the development of Lagos State. The Law unified the taxes and rates hitherto payable under the Land Rates Law, Neighbourhood Improvement Charge Law and Tenement Rates Law of the State into the Land Use Charge (“LUC” or the “Tax”). No amendment has been made on the Law since commencement, with the first changes now being proposed by the Land Use Charge (Repeal and Re-enactment) Bill 2018 (the “Bill”).
We provide in this briefing, highlights of the Bill and our remarks on some of the new introductions of the Bill as well as the provisions of the Law which we consider otiose but which the Bill does not seek to amend. With the Bill set for public hearing at the Lagos State House of Assembly on Tuesday, January 16, 2018, we hope our Clients, friends and Government find our remarks helpful:
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