UNDERSTANDING PROPERTY TAXES: ASSESSMENT, APPEALS AND EXEMPTIONS




UNDERSTANDING PROPERTY TAXES: ASSESSMENT, APPEALS AND EXEMPTIONS
Property taxes are a form of tax levied on real estate by local governments, state government or federal government. They are a source of generating revenue for the government.

 Types of Property Taxes in Nigeria

Capital Gains Tax: Tax to be paid from the profit from selling a property.
Stamp Duty: Tax expected to be paid for transferring property ownership.
Development Levy: Tax for local infrastructure development and it is paid annually in most locality
 
 Factors that are Considered for Property Tax

Location: Taxes vary based on the property's location.
Property Type: Residential, commercial, or industrial properties have different rates.
Property Age: Some older properties may have lower tax rates.
Property Improvements: Renovations or additions can increase taxes.

 Assessment

Property assessment is the process of determining the value of a property for tax purposes. This is usually done by government agencies like LUCAAT. After all required documents have been submitted at the appropriate office such as the land registry, those submitted documents will be assessed and the value is used to calculate the amount of property tax owed or required to be paid.

 Appeals

If you disagree with the assessed value of your property, it is your right to appeal. The appeals process varies by state, but it usually involves filing a formal request of the appeal with the relevant tax authority.

 Exemptions

Some properties are exempt from property taxes, such as Churches, mosques and other religious organization or used for educational purposes.

 Non-compliance : Property owners who fail to comply with the payment of property taxes risk facing penalties, such as fines or even property seizure, depending on the jurisdiction

 Important Considerations

Property tax laws and rates vary by state in Nigeria.
It's important to understand the laws regulating property taxation in your various states.
If you have any questions about property taxes, you should contact your local tax authority or a tax professional.

Recently, there has been an encouragement to the government to technologize processing of property tax collection in Nigeria. Many states such as Lagos State have introduced E-platforms, such as online property tax portals, to make the process more transparent, stress-free, seamless and efficient. These efforts are part of broader initiatives to boost internal revenue generation at the state and local levels.

Disclaimer:

This article provides general information and is not intended to replace professional legal advice. Consult a qualified professional from Notre Dame Attorneys at 08033056627 for personalized guidance.




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