Lagos dazzles property owners with discounts, waivers

• Tank farm operators get ultimatum on planning permit

Respite has come on the way of Lagos property owners as the State Government announced waivers in the payment of the Land Use Charges (LUC) for year 2017, 2018 and 2019.

The state has also granted 25 per cent discount to all property owners that pay on or before 30 days after the bill is delivered, while the 2020 LUC Law further introduced a 10 per cent and 20 per cent special relief for vacant properties and open empty land, respectively.

The right of enforcement has been reduced from notification of three default notices to two default notices, while Section 14 of the Law also makes it possible for the Commissioner to appoint any person including an occupier of a chargeable property to be an agent of the owner for the purpose of collecting land use charge.

The new move by the government was aimed at reducing the sufferings of residents and businesses as a result of the coronavirus pandemic as concerns were rife in 2018 over increment in the charges as well as the method of valuation of properties by the Akinwunmi Ambode administration.

The new provisions noted that all property owned and occupied by pensioners are exempted from paying the LUC.

Consequently, outstanding payments within 45-75 days have been reduced from 25 per cent to 10per cent, 75-105 days from 50per cent to 20per cent, 105-135 days from 100per cent to 50per cent, while there is also a 48 per cent reduction in the annual charge rates.

In the same vein, a reduction was made in owner-occupied residential property from 0.076 per cent to 0.0394per cent, industrial premises of manufacturing sectors from 0.256per cent to 0.132per cent.

Also, residential property/private school (owner and third Party) got reduction from 0.256per cent to 0.132per cent, residential property (without owner in residence) from 0.76per cent to 0.394 per cent, Commercial property (used by the occupier for business purposes) from 0.76per cent to 0.394per cent and properties and open empty land from 0.076per cent to 0.0394per cent.

The State also granted a reduction on annual charge rate for Agricultural land from 0.076per cent to 0.01per cent, representing 87per cent reduction from the old rate.

The State said that in addition to the reintroduction of the 15per cent early payment discount, an additional COVID-19 incentive of 10per cent will be granted on the total amount payable, amounting to 25 per cent in a total discount for early payment if payment is made before the due date

The Commissioner of Finance, Dr. Rabiu Olowo, hinted that the current administration decided to review the charges by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation.

Olowo, assured Lagosians that the response time for any complaint will not exceed 24 hours.

In a related development, the state government has given tank farm operators one-week ultimatum to regularise their facilities by filling application for planning permit.

Commissioner for Physical Planning and Urban Development, Dr. Idris Salako, who gave the directive during a meeting with tank farm operators in Ikeja, revealed that only eight out of the 41 tank farms had planning permits authorising their establishments.

Salako lamented that the tank farms had been operating illegally and at variance with Section 27 of the state’s Physical Planning Permit Authority (LASPPPA) and Building Control Agency (LASBCA) regulations 2019.

He vowed that any tank farm that failed to start the process of regularisation of its facility after one week would face serious sanctions.

Commissioner for Physical Planning and Urban Development asserted that the operations of the tank farms had thrown up many challenges for the state, including pipeline vandalism, environmental degradation, fire outbreak, traffic congestion and destruction of public infrastructure, among others.