Overview of Increase in LUC mille rate
The Lagos State Government has approved a marginal increase of 5% in LUC.
|
CATEGORY |
OLD RATE |
NEW RATE |
|
OWNER OCCUPIED |
0.0375 |
0.0394 |
|
INDUSTRIAL, EDUCATIONAL, OWNER AND THIRD PARTY |
0.125 |
0.132 |
|
COMMERCIAL, REVENUE GENERATING |
0.375 |
0.394 |
BACKGROUND
A stakeholders meeting was held on the 24th of February 2003. This meeting which was attended by representatives of the organized private sector, private citizens as well as the State Government resolved to implement the previous rates for the assessment of the Land Use Charge. The effective period for these rate regime was from 1st January, 2001 to 31st December 2008. Thereafte, the State Government was at liberty to adjust the mille rates of the Land Use Charge.
The 7 year tenure of that agreement has lapsed and a new LUC mille rate regime has been due since January 1st 2009.
This new mille rates takes effect from 1st January, 2012.
The new regime only allows for a marginal increase in rate of assessment. This is illustrated with the table below:
TABLE HIGHLIGHTING EFFECT OF 5% INCREASE IN MILLE RATE.
|
LGA ( 1) |
PROPERTY CLASSIFICATION |
SUB CLASSIFICATION |
CURRENT OPEN MARKET VALUE |
ASSESSED VALUE @50% OF OPEN MARKET VALUE ADOPTED BY LRC |
CURRENT MILLE RATE % |
CURRENT LUC |
NEW MILLE RATE |
INCREASE IN MILLE RATE 5%) |
INCREASE IN NAIRA |
|
ETI OSA |
COMMERCIAL |
|
400,000,000.00 |
200,000,000.00 |
0.375 |
750,000 |
0.394 |
787,500 |
37,500 |
|
|
RESIDENTIAL |
TENANT ONLY |
100,000,000.00 |
50,000,000.00 |
0.375 |
187,500 |
0.394 |
196,875 |
9,375 |
|
|
|
OWNER/TENANT |
100,000,000.00 |
50,000,000.00 |
0.125 |
62,500 |
0.132 |
65,625 |
3,125 |
|
|
|
OWNER OCCUPIED |
100,000,000.00 |
50,000,000.00 |
0.0375 |
18,750 |
0.0394 |
20,312.5 |
1,562.5 |
|
|
INDUSTRIAL |
|
600,000,000.00 |
300,000,000.00 |
0.125 |
375,000 |
0.132 |
393,750 |
18,750 |
|
|
|
|
|
|
|
|
|
|
|
|
IKEJA |
COMMERCIAL |
|
200,000,000.00 |
100,000,000.00 |
0.375 |
375,000 |
0.394 |
393,750 |
18,750 |
|
|
RESIDENTIAL |
TENANT ONLY |
90,000,000.00 |
45,000,000.00 |
0.375 |
168,750 |
0.394 |
177,187.5 |
8,437.5 |
|
|
|
OWNER/TENANT |
90,000,000.00 |
45,000.000.00 |
0.125 |
56,250 |
0.132 |
59,062.5 |
2,812.5 |
|
|
|
OWNER OCCUPIED |
90,000,000.00 |
45,000,000.00 |
0.0375 |
16,875 |
0.0394 |
17,718.75 |
843.75 |
|
|
INDUSTRIAL |
|
1,700,000,000.00 |
850,000,000.00 |
0.125 |
1,062,500 |
0.132 |
1,115,625 |
53,125 |
|
|
|
|
|
|
|
|
|
|
|
|
APAPA |
COMMERCIAL |
|
120,000,000.00 |
60,000,000.00 |
0.375 |
225,000 |
0.394 |
236,250 |
11,250 |
|
|
RESIDENTIAL |
TENANT ONLY |
90,000,000.00 |
45,000,000.00 |
0.375 |
168,750 |
0.394 |
177,187.5 |
8,437.5 |
|
|
|
OWNER /TENANT |
90,000,000.00 |
45,000,000.00 |
0.125 |
56,250 |
0.132 |
59,062.5 |
2,812.5 |
|
|
|
OWNER OCCUPIED |
90,000,000.00 |
45,000,000.00 |
0.0375 |
16,875 |
0.0394 |
17,718.75 |
843.75 |
|
|
INDUSTRIAL |
|
1,700,000,000.00 |
850,000,000.00 |
0.125 |
1,062,500 |
0.132 |
1,115,625 |
53,125 |
|
|
|
|
|
|
|
|
|
|
|
|
LAGOS ISLAND |
COMMERCIAL |
|
90,000,000.00 |
45,000,000.00 |
0.375 |
168,750 |
0.394 |
177,187.5 |
8,437.5 |
|
|
RESIDENTIAL |
TENANT ONLY |
50,000,000.00 |
25,000,000.00 |
0.375 |
93,750 |
0.394 |
98,437.5 |
4,687.5 |
|
|
|
OWNER/TENANT |
50,000,000.00 |
25,000,000.00 |
0.125 |
31,250 |
0.132 |
32,812.5 |
1,562.5 |
|
|
|
OWNER OCCUPIED |
50,000,000.00 |
25,000,000.00 |
0.0375 |
9,375 |
0.0394 |
9,843.75 |
468.75 |
|
|
INDUSTRIAL |
|
60,000,000.00 |
30,000,000.00 |
0.125 |
37,500 |
0.132 |
39,375 |
1,875 |
|
|
|
|
|
|
|
|
|
|
|
|
ALIMOSHO |
COMMERCIAL |
|
40,000,000.00 |
20,000,000.00 |
0.375 |
75,000 |
|
78,750 |
3,750 |
|
|
RESIDENTIAL |
TENANT ONLY |
90,000,000.00 |
45,000,000.00 |
0.375 |
168,750 |
|
177,187.5 |
8,437.5 |
|
|
|
OWNER/TENANT |
90,000,000.00 |
45,000,000.00 |
0.125 |
56,250 |
|
59,062.5 |
2,812.5 |
|
|
|
OWNER OCCUPIED |
90,000,000.00 |
45,000,000.00 |
0.0375 |
16,875 |
|
17,718.75 |
843.75 |
|
|
INDUSTRIAL |
|
40,000,000.00 |
20,000,000.00 |
0.125 |
25,000 |
|
26,250 |
1,250 |
|
|
|
|
|
|
|
|
|
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