The administration of taxes in Lagos State had always been strenuous as citizens goes through rigorous means to make payment which contradict one of the cannon of taxation. Consequent to this, certain taxes had been subjected to debate as to which tier of government is responsible for its collection and without a defined solution. Due to this fact evasion becomes rampant though citizens are willing to satisfy its responsibilities towards tax payment but the fact that each tier of government claims its collections makes it worrisome and unjustifiable.
However, the emergency of a new government in 2007 was a significant relief to tax administration in Lagos State as its payment and collection was made easy thus; citizens can pay in any Lagos State internal revenue board or make payment online, with this convenient payment plan, it enable it meets one of the requirement of the cannon of taxation. Suffix to this, the issue of whose tier of government is responsible for tax collection was resolved due to the enormous cry of the public of multiple tax payment by the tier of government especially property tax which each tier claims to be the sole administrator e.g. tenement rate, ground rent, neighbourhood development tax amongst others. Each tier of government had over the years lay claims to some of the numerous ax accorded to property thereby resulting to double or multiple charges on single property.
To this end, the new government introduce the Land Use Charge which the government made to cover all the numerous property taxes due for payment by citizens o its property. The Land Use Charge was enacted by virtue of the Law No 11 2001 of Lagos State which empowers the state to administer all taxes in Lagos State and its environs.
It should be pointed out the simplicity which made land use charge to be expressly defined are its procedure and rates of payment
(a) Commercial property used for residential purposes â€“ 0.5% per annum of the total assessed property value
(b) Owner â€“ occupier pensionerâ€™s property â€“ exempted.
(c) Owner - -occupier residential property â€“ 0.15% of the total assessed property value
(d) Commercial property used for business purposes â€“ 1.25% per annum of the total assessed property value
(e) Industrial premises used for manufacturing concerns â€“ 0.5% per annum of the total assessed property value.
Pursuant to the above adequate information was given to the public about the above as it was aired on television, radio and print media. One can only under-emphasized the blessing and relief the Land Use Charge has been to the people of Lagos State.