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I just received a LUC assessment for the first time, but I am being asked to pay arrears. How do I go about it?

      Every Property Owner has a civic responsibility to pay their property tax and tenement rate on an annual basis. Valid documents of proof of payments should be made available to prove that the responsibility has been discharged for previous years. Otherwise, the Land Use Charge should be paid.

How is the Land Use Charge calculated?


Charge rate for the Financial Year is calculated according to the following percentages:                

·         Commercial property                                           0.422% (of rated value)

·         Residential Property (Commercial)                         0.20%   (of rated value)

·         Industrial Premises of Manufacturing Concern         0.25%   (of rated value)

·         Owners Occupied Residential Property                    0.04%   (of rated value)

What are the penalties/liabilities for non-payment or non-compliance?


Section 22 (1) of the LUC law says where a person who has received a Land Use Charge Demand Notice fails to pay the amount charged within the period specified in the Notice, liability shall be increased as follows:

             Between 45 and 75 calendar days         10% of amount charged;    

             Between 75 and 105 calendar days       20% of amount charged;      

             Between 105 and 135 calendar days     30% of amount charged,

     While sub-section 2 of that same section states:

If payment of the entire amount due is not made after 135days after demand notice is served, the service may institute a legal process for recovery of same plus an additional interest of 31%.

Is the assessed amount due negotiable?


No, the assessment is not negotiable.

What do I do with the receipt/ teller after payment?


In order to reconcile your payment in our records, it is advised that a copy of the bank teller/ E-ticket be presented at the LUC office in order to be issued a revenue receipt of payment or by calling our dedicated customer care lines for further information.

What is Land Use Charge?

    Land Use Charge is a consolidation of all property and land based rates and charges which consists of Property tax, Tenement rate and Ground rent payable in Edo State. The Land Use Charge derives its legality from the Edo State Land Use Charge Consolidation and Amendment Law of 2013.

Who is liable to pay the Land Use Charge?

      The Law places the responsibility for payment on the owner of an assessed property, and such person is liable to pay Land Use Charge in respect of the assessed property. 

   


Are there exemptions under the law?

The Law provides exemptions from paying in certain instances. Among these are the following:

•        A property owned and occupied by a Religious body and or used for non-profit making religious education

•        Public cemeteries and burial grounds;

•        Public libraries;

•        All official palaces of recognized traditional rulers in the State; and

•        Any property specifically exempted by the Governor of Edo State by notice published in the State Government Official Gazette

•        Owner occupied Residential Property which is;

          -50ft by 100ft in an urban area;

-100ft by 100ft in a rural setting not more than N10 million in value respectively;

•        Community property solely for community meetings, activities and events.

Are there sanctions for failure to comply with payment as well as other obligations of the law?

Land Use Charge Consolidation and Amendment Law 2013 states accordingly, that any person who refuses, or neglects to comply, prevents, hinder or obstruct an assessor in the course of his lawful duty or with intent to obliterate relevant records or damages or destroys a property, identification plaque, or any property or building has committed an offence and shall be liable on summary conviction to a fine of N100,000.00 in the case of an individual or N500,000.00 in the case of a corporate body or to a term of imprisonment for a period of three (3) months, or both such fine and imprisonment

Can I lose my exemption status?

Yes. The Law stipulates that a property or part of a property shall become liable to Land Use Charge if:

- The property changes to one that does not qualify for exemption.

- The LUC status of a property changes, LUC imposed in respect of that property shall be prorated so that the charge is payable only for that part of the year during which the property, or part of it is not exempted.

Can I pay my Land Use Charge in installments?


The Land Use Charge provides for installment payments as long as payments are made within the stipulated time as prescribed by law. However, please note that where underpayments/installment payments have been made in respect of any property, the said property is still in default and would be enforced upon when enforcement activities are carried out. All outstanding payment is carried over to the next year with its full interest compliment. 

How can i make payment?


Payments can be made into any of the designated banks listed on the reverse side of your Demand Notice, online payment platform and all our various mobile payment channels.

Is Land Use Charge to be paid on an undeveloped piece of land?

Yes, since Land Use Charge includes all land based rates.

Why are the same type of properties in the same area and occupying the same size of land being charged different rates?

    For the purpose of Land Use Charge, properties are assessed individually. For any two similar properties, the physical appearance, aesthetic features and age will determine the property class rate (i.e. high, medium, and low) to be adopted in the valuation of the property. Another reason for charging different rates on any similar properties is the usage and status of occupation. It is however worthy to note that assessment is classified under 3 categories i.e. Commercial, Industrial/Educational and Residential usages.