Land Use Charge Law, 2012 (No. 41 of 2012)

e ' ~'10" ,' .. ,.~ .~,,~,............ . . :"'. !IIa."";; .. ~,,,!!!!.,,,,a.."tll!l. b!l!'!II-'''''''l..!I!JiI!llIIl!lS ..... !I!!L!IIll!!1J!!I§' .. ,,, ... · .. ;-J. I c , l C'C( Assented to by me this . ..... . ,.«.: .. ... ... day of ..... .. ,,·;: .. .. :;;;;', .... , . ..... .. .. ... , ........... 2012 c. ;" ~>.~- ... -ti'.'. ; ......... ~ ... ... ... ; .... :: .. ........ :.~ ........ ... .... .... .... . SENATOR ABIOlA ISIAQ AJIMOBI HIS EXCEllENCY,THE EXECUTIVE GOVERNOR Crest Oyo State of Nigeria No.41 A LAW TO MAKE PROVISIONS FOR THE LEVYING AND COLLECTION OF THE CHARGES ON LAND AND FOR OTHER MATTERS CONNECTED THEREWITH Date of Commencement: Enactment Short Title : Interpretation : 1 2. ENACTED by the House of Assembly of Oyo Siale of Nigeria as follows: This Law may be cited as the Land Use Charge Law, 2012 In this Law: "assessment appea l tribunal" means Ihe As sessment Appeal Tribunal established in Section 12; "building" includes anything constructed or placed on, in over or under land but does not include a highway or roa d or a hridge that or part of a highway or road; "charge" means an assessed amount on property payable under till ' Law; "chargeable person" means a person liable [0 pay LallG Use cha rge on a chargeable property or his appointed successors-in -t itle, assigns, executors and administrators; "chargeable property" means any propert y in .. espec t of which land Use Charges is payable; "collecting authority" means the Gove rnment of Oyo State or any officer, authority or agent; = " ,:: f L f 2 \ ( () "Commercial property" includes shops, shopping complexes, offices and leased property; "Commissioner" means Commissioner for Finance, Oyo State; "court" means Magistrate Court not lower than Senior Magistrate Grade I "Exempt property" means any property of a class described under Section 8; "Financial Year" means any period of 12 months beginning from January 1 and ending on the December 31 next; "Governor" means the Governor of Oyo State; "hospital" includes clinics, maternity centres, convalescence homes and health centres. "improvement to property" means a building, structure, fixture or fence erected on or affixed to land, or a movable structure that is designed to be occupied for residential or business purposes whether or not affixed to the land; "private property" means a residential property used as the residence of the owner or his immediate family members. "net land use charge" means the actual amount of Land Use Charge collected and deposited with respect to tile properties in a Local government Area, less the cost of collecting that charge and less fees payable to designated banks for the deposit or withdrawal of Land Use Charge payments; "occupier" In relation to a property, includes any pel'son in benefiCial occupation whether pecuniary or otherwise but does not Include a lodger; "owner" In relation to any property shall include the person for the time being receiving the property in connection with which the word is used, whether on his own account or as agent or trustee for any other person who would receive the sum if such property were let to a tenant. ami the holder of a property direct from the State whether under lease, license or otherwise. ..... -.-.... ~-•... ~-------~~ " j .~ ! , .: := , j .. ! Imposition of 3(1) Land Use Charge Bill Power of 411) 3 "Real property" includes la) A parcel of land; Ib) An improvement; (c) A parcel of land and improvement; or (d) A wharf or pier; I \ I "land use charge" includes all property and Land Based Rates and Charges payable under this Law; "state" means Oyo State Government; "structure" means a building or oth er e rection pl aced in, on oyer or under land whether or not It is affixed to the land; Subject to the provisions of thi s Law, there is lin posed a land based charge, to be called Land Use Charge which shall be payable on all real property situate in the State; (2) For the purpose of this Law, each Lo cal Government in the State IS hereby appointed by the State Governor be the only body empowered t o levy and collect Land Use Charge for its area of jurisd iction. (3) Land Use Charge shall be payable in respect of any property that is not exempt under Section 8 of this Law. The Commissioner shall undertake or cause to be undertaken an Commis5l0ller to assessment of chargeable properties in such areas of the State as the Appoint A ~st's~)ljl ~, Commissioner may designate . 12) For the purpose of subsection 11) hereof. the CommISsioner may appoint such property identifica tion officers, qualified aSSesso rs and other persons as he considers necessary. 13) For the purpose of carrying out the identifica t ion or assessment of a property, the identification offi ce rs or assessors or their authori zed assistants may, on any day between the hOllr of 7.00am and S.OOp.m . exc lud ing Saturdays and public holidays: (a) enter, inspect, survey and assess the property; (b) requ est documents or other information to be produced to t he identification officer or assessor; (c) take photograph s; and, or (d) make copies of docum ents necessary to the Inspection. !t ," ; I ;~ , ft . , Person liable to pay charge Value of annual charge rate, Payment of Charge Exempted Property 5, 4 The owner of the property shall liable to pay Land Use Charge in respe ct of any chargeable property. 5{l ) The value of the annual charge rate for the financial year in which this Law comes into force, and in each subsequent financial year shall be set by the Commissioner and shall be published in the State Government Official Gazette and in one or more newspapers circulating within the State, (2) The values of the property Code Rate shall be set by the Commissioner on the date when ihis Law comes into force and shall, from time to time, be revised by the Commissioner, subject to the approval of the House of Assembly, (3) The amount payable as Land Use Charge sha ll be determined in accordance with the formula set out in the Schedule to this Law , l A person liable to pay Land Use Charge shall pay the charge in the manner specified in the Land Use Charge Demand Notice. 8.( 1) The following properties shall be exempted from payment of Land Use Charge: (a) A property owned and occupied by a religious body and used for worship and religious education; (b) Cemeteries and burial grounds; (c) Property used as public library; (d) Any property specifically exempted by the Governor by notice published in the Official Gazette giving reason(s) for such exemption , (e) palaces of recognized Dbas and Chiefs in the State; (f) all public buildings; (g) all buildings used by Government for hospital s. (h) property wholly used for registered orphanage home, child care centre and other philanthropic purpose, (2) The Commissioner may by notice published in the State Government Official Gazette grant partial relief for a property that is occupied by a non-prof It making organization and used solely for community ga mes, sports, athletiCS or recreation for the benefit of the general public. . . .,.....,, ~~ """''''''' '''''.~i''. ".". 111! ~$ "' •• 11$1. !iltilil. 1 • . -l1li ... - .... ••· > ,.. /7' . ~ " ,-. ,; f , Los; of exemption Land Use 9[1) 5 \ I -:s An exempted property or part of an exempted property shall become liable for Land Use Charge if: (a) The use of the property changes to one that does not qualify for the exemption; or (b) The occupier of the property changes to one who does not qualify for the exemption. (2) If the Land Use Charge status of a property cha nges, a La nel Use Charge "nposed in respect of that property shall be prorated so that the Land Use Charge is payable only for that part of the year in whi ch the property, or part of it is not exempt. lOll) The Comm iss ioner shall cause to be issu ed in each Financia l Year a Land Use Charge Denlal,d Charge Demand Notice with respect to every chargeab le propelty that has b~I'" Notice . assessed in accordance with this Law . Power of payment by the occupier (2) The Land Use Charge Demand Notice shall be delivered to the owner or occupier of the property. (3) If there is no owner or occupier or agent ava ilable to take delivery, the Land Use Charge Demand Notice shall be pasted on the property and such posting shall be deemed sufficient delivery of the notices . (4) The person liable to pay the amount of Land Use Charge on the demand notice sha ll within 30 calendar days after the date of delivery of the Land Use Charge Demand Noti ce pay that amount in the manner specified in the Demand Notice. (5) Upon an application in writing made by the owner, the CommiSSioner may reuuce Hie Land Use Charge by such dIScount as is specifi ed III the demand notice, if the owner pays within15 days of receiving the demand notice. 11 . The collecting Authority may by notice in writing demand Land Use Charge from the occupier of a chargeable property and if the payment is made by an occupier who is a tenant such shall be recoverable from the rent or othe' money due or to become due to the owner illeJelllllifi cdt lUfl 12 of Agent every person liable under this Law for payment of Land Use Charge on behalf of an owner may retain out of any money coming into his hands on behalf of or becoming due for him to the owner as may be sufficient t o pay the charge, and shall be indemnified against any person for all payment made by him under this Law. ¥ • 6 II )f Appointment and 13(1) There is hereby established an Assessment Appeal Tribunal in the following qualification of zones of the state: Assessment Appeal Tribunal (a) Ibadan Zone I; (b) Ibadan Zone 2; (c) Oyo Zone; (d) Ogbomoso zone; (e) Ibarapa zone; (f) Oke -Ogun zone I; (g) Oke -Ogun Zone 2 i 2) The Tribunal shall consist of five (5) members appointeel by tile Governor on tile recommendation of the Commissioner except the Chairman of the Tribunal. The Membership shall comprise the following professionals with a minimum of five (5) years post qualification experience. (3) The appointments to be done under subsection (2) of this sect ion shall be on the recommendation of the Commission from among persuns possessing tile following qualifications: (d) A Legal practitioner as the Chairman on the recommendation of Attorney General. (b) A registered Estate Surveyor and Valuer (c) And three (3) other members from the following profeSSions with relevant qualifications. (I) Quantity surveying ( ii) Land surveying (iii ) T own Planning (IV ) Business Administration (v) Accounting (4 ) A minimum of 3 members shall constitute a panel of th e Tribunal. (5 ) M embers of the Tribunal shall hold office for a peflod of 3 years as may be prescribed by the Governor and shall be paid such allowances as the Governor may, from time to time, determine. l1' Power of Assessment Appeal Trrbunal 14 . L u • 7 The Assessment Appeal Tribunal may: (a l (b ). by summons, require the attendance of any person, examine hrrn and may require answers to any quest ion which it may deem fit to put concerning an appeal before it ; Require and enforce the production of all books and documents which it may consider necessary; (c) administer oaths and affirmations; (d ) levy fine against appellants if the members of the T,il)"na l conside, 11,,, 1 the appeal before it is of a frivolou s nature and such fine shall not exceed 10% of payable charge . Appea l "garr,sl ISI I ; A person may appeal to the Tribunal if he 15 aggrieved by: Assessmenl ConditIons lb. uf Appeal (a) a decision that the properly which he own s is a ch argeable property: or thaI he is liable to pay land Use Charge in respect of such property; or (h ) any calculation of an amount which he is liable to pay as land Use Charge, and the Tribunal shall make such decision as it deems fit ; 12) The time allowed for an appeal to the Tribunal shall be 30 days after the date of delivery of the demand notice. (3) The onus of proving an excessive assessment of a property shall lie on the Appellant. ,·1, A person giving evidence before the Tribunal shall, in respect of any evidence grven by him or any document he is required to produCt'. be entitled to all the ~)!ev ileges to which a witness in a trial before a M agistratf:' Cour t is en titied (5) In respect of the compelling of witnesses, Tribunal shall have same powers ao Ihat of a Magistrate court . ; 1.,) Tire As sessment Appeal Tribunal may confirm, reduce, 'ncrease or annul the d ~ ':i ~'ssed valu e . 17) An appeal from a deciSion of the tribl",,1 may be made to the High Court The Ministry of Justice will prescribe the fee to be pa id to the Assessment Appeal Tribunal. ... , , if 8 Land Use 17(1) The Commissioner shall establish and maintain a fund, to be known as the Land Use Charge Collection Fund, consisting of all Land Use Charge payments deposited in accordance with this Law. Collection Funu (2) At the beginning of each month, the Commissioner shall determine the total amount of Land Use Charge payments deposited. (3) The Commissioner shaH, not later than 10 days aher ti,e beginning of each month, pay to each Local Government Council in the State a share of the land Use Charge Collection standing on deposit in the fund , I ~ : Tht, share to be paid by the Commissioner to each loca l Government Council slldll be such percentage of the Net land Use Charge on deposit at the end of each month as agreed between the State and aH the l OCdl Governm en t Areas 18, The Commissioner may apply to a court to: (a) recover sums payable under this law; (b) recover any land Use Charge or penalty incurred under this Law by a deceased person at any time before his death; (c) attach a person's earnings or goods where a court has made a liability order against that person. J Y AllY person who: ia) refu ses or neglects to comply with any rrovlsion of th iS l aw when he is required to do so by the property identification office r or an assesso r; (0) prevents, hinders, or obstructs any property Ide ntification officer or an assessor in tile co urse of his lawful duty; (e) removes from or damages or destroys a properl y identification plaque on any property or building; commits an offence ancl shall be liable on summary conviction to a fine of an amoun t not exceedi ng #100 ,000,00 or to a term of imprisonment for a period of 3 111 0nths or both , Penalt y fOI 20. All Y person who InCiting a fJel':>OIl to refuse to fJd'y Charge (a) incites another person to refus e to pay any rate uncler this Law on or before the day on which it is payable ; or (iJi ICcites or assist any person to misrepresent III any way his chargeable capacity; com mits an offence and shall be li able 011 convic tion to a maximum fine of an amount not exceeding #100 ,000.00 or to term of imprisonment of 3 months or both, .... I !£ ' . Ii. (. T 5 9 \ ( 1 21(1 1 Where a person who has received a Land Use Charge Demand Notice fails to pay the amount within the period specified in the Notice, the charge payable shall be increased by the following percentage: (a) between 45 caiendar days and 75 calendar days 10% (b) between 75 calendar days and 105 calendar days 25% (c) between 105 calendar days and 135 calendar days 50% (2) If payment is not made after 135 calendM days, the owner of the property on w hich the Land Use Charge is payable shall be lia ble to be ( hul ged to court (3 I The owner is however entitled at any time to apply to the Tribunal fOI a review of any charges and penalties under th is law. Regulati on; 2 2 Subject to the approval of the House of Assembly, the Commissioner may make prescribing regulations generally for carrying into effect the purposes of thi s Law. Procedure. Repeal 23 . The Tenement Rates law Cap 160 Laws of Oyo State, 2000 is hereby repealed. The prll1ted Impression has been carefully compared with the Bill which was passed by the Oyo State House of Assembly and it is hereby certified to be a true dnd correct printed copy of the Bill. Rt. Hon, (Hadjia) M. J. Sunmonu Speaker, House of Assembly ~.-. -: ;..- .... / / -----.. -. . - . , -\. ... -. . . -' - .~---......... ;-; .......... " ~~::-:-: .. . Barrister Paullshola Bankole Permanent Secretary/Clerk '"w ! , ., , , ~ -", .. " as .. 10 SCHEDULE (SECTION 6) The formula to be u; "d to determine tbe annual amount of the Land Use Charge payable for any property under thIS Law is here in provided as follows : LUC Where LUC M LA LV BA BV PCR M (LA X LV) + (BA X BV X PCR) annnal amount of Land Use Charge In Naira the annual charge rate expressed as a percentage of the assess ed value of the property and which may, at the State Government's discretion va ry between owner-occupied residential property and commercial (revenue generating) property . the area of the land parcel in square meters. ttle average value of a land parcel in the neighbourhood, per square meters in Naira the total develop floor area of building on the plot of land in square meters, or the total floor area of apartment unit in a building where apartment has a separate ownership title th e average value of medium quality building; in the neighbourhood, per square meter III Ndl ra, the property Code Rate fo r the building being of hieher or lowel vdlue lnan the average bu dd lngs In the neighbourhood and which also accounts for the degree of completion of construct ion of the building. (( LA X LV + (BA X BV X PCR) = the assessed value of the propert y