Know more about
Tenement Rate
What is Tenement Rate?
Tenement rate is simply a pre-determined fee/tax charged and collected by a local government authority on a developed and occupied property. In other words, it is a rate or tax levied upon the owners or occupiers of property. Tenement rate is not levied or charged on an empty, unoccupied or undeveloped land.
References:
1. Section 7(5) and 1(f) of the 4th Schedule to the Constitution of the Federal Republic of Nigeria,1999.
2. THE TAXES AND LEVIES (APPROVED LIST OF COLLECTION) ACT
3. The case of AG Cross Rivers State & ANOR V. Ojuah,Esq (2010) LPELR-9014(CA)).
References:
1. Section 7(5) and 1(f) of the 4th Schedule to the Constitution of the Federal Republic of Nigeria,1999.
2. THE TAXES AND LEVIES (APPROVED LIST OF COLLECTION) ACT
3. The case of AG Cross Rivers State & ANOR V. Ojuah,Esq (2010) LPELR-9014(CA)).
Who is liable to pay the Tenement Rate?
The liability to pay tenement rate is placed primarily on the occupier of the property. Most times, the occupier of the property is usually the tenant except where the landlord or the owner of the property is himself the occupier.
More F.A.Q about Tenement Rate
Click the Heading To Reveal the Answers
Is the amount due negotiable?
No. However, if payment is made within 15 days of the delivery of the demand notice, a discount of 15% is applicable.
My neighbours have received their Tenement Rate bill, why have I not received mine?
There is no reason why you should not have received your bill. Please forward all request for bills through the complaints interface on our website. Your requests and complaints can also be made through any of our hotlines or via email at the back of year 2016 bill.
What happens to the discount/provisional penalty fee where the notice of Tenement Rate is dispatched l received late due to no fault of the owner of the property?
All claims of late receipt of Tenement Rate demand notices are checked against our proof of delivery of such demand notices. Where this claim is verified in favour of the property owner, the property owner is reissued a new Tenement Rate demand notice which will enable him enjoy the discount available.
l own an “empty land”, am I liable to pay?
Yes. Since, Tenement Rate 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 Tenement Rate, 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 noteworthy that property assessment is classified under 3 broad categories i.e Commercial, Industrial and Residential usages. Commercial properties generally attract a rate of 0.394% of the rateable value. Industrial and residential properties occupied by owner and third party(ies) are assessed at a rate of 0.132% of the rateable value.
A property solely occupied by the owner for residential purpose will be charged at a rate of 0.1999%.
A property solely occupied by the owner for residential purpose will be charged at a rate of 0.1999%.
Several properties are receiving Tenement Rate Bill for the first time, yet they are being asked to pay arrears. What are they to do about it?
Demand notices issued with arrears are reviewed against our proof of delivery of the Tenement Rate demand notices on such properties for the previous year(s) for necessary correction. Such cases should be registered through the complaints interface of our website, or through our help lines or email address.
What happens to any arrears?
Payment is to be made once and in full. However amounts left unpaid are carried over to the following year with its penalty element.
Can l pay to any bank?
No. There is a list of designated banks on the reverse side of your demand notice. It is also important to pay into the correct bank account as payment to wrong accounts invalidates payment. There are also other payment channels such as POS and online.
Can I pay my Tenement Rate in Installments?
The Tenement Rate does not provide for installment payments particularly since 15% discount is granted for early payment. However, amounts left unpaid are carried over to the following year with their penaltie
I paid my Tenement Rate last year but the payment has not reflected in this year’s assessment, what do I do?
Please pay this year’s assessment and visit our complaint office with proof of last year’s payment to effect reconciliation.
What do I do with the receipt/teller after payment?
In order to expedite the update of your payment into our records, we request that you scan a copy of the teller and UDU LOCAL GOVERNMENT receipt issued upon payment and email them to our address najomohsunday@gmail.com or text the details of payments to our designated hotlines.
These details should include: amount paid, Bank payment code, Name of Property owner and address of property paid for.
These details should include: amount paid, Bank payment code, Name of Property owner and address of property paid for.
Some property owners have paid Tenement Rate for the year before receiving Tenement Rate or vice versa, what happens in such a case to the Tenement Rate Notice?
In a situation whereby the property owner received the Tenement rate demand notice and has made payment before receiving the Tenement Rate demand notice for the first time, the amount paid should be deducted from the Tenement Rate (if the Tenement Rate is higher than the Tenement rate,) then pay the outstanding balance, All evidence of payment including payment of Tenement rate should be forwarded to our office.
However, where Tenement Rate demand notice is received before any of the consolidated charges i.e. tenement rate, ground rent and neighborhood improvement charges. Tenement Rate should be paid as it covers all these rates and charges. See section 22 of the Tenement Rate law, number 11 of 2001.
The demand notice I received is addressed to “Property Owner” should I pay this bill?
In instances such as these, please pay the assessed amount and then register your complaints through the complaints interface of our ’email: najomohsunday@gmail.com ‘ to inform us of your details.
Who is a 3rd party?
3rd party refers to anyone other than the property owner who resides in the property. This also includes relatives of the property owner who are of taxable age.
What is a final Reminder Notice?
This is a notice sent to property owners whose payment have not fallen within the penalty period but who have not paid their bills.
I cannot pay the penalty charges on the Final Reminder Notice since I did not receive the First Demand Notice. What should I do?
Please register your complaints through any of our customer service channels. However note that all claims of non receipt of First Demand Notice will be checked against our proof of delivery of all bills.
Are property owners supposed to pay for assessment of their property?
No. The cost of assessment is free to property owners.
Do l engage touts to assist me with my Tenement Rate bill?
There is no reason to engage the services of touts since all our communication channels are open, as we strive to maintain customer satisfaction.
Kindly register your complaint through any of our customer service centre / nearest office/ help line/email address.
Kindly register your complaint through any of our customer service centre / nearest office/ help line/email address.
What should I do if the property I bought has Tenement Rate arrears and this fact was not disclosed to me by the seller?
You should inform the seller to pay the LUC arrears. Where the seller however refuses to pay, the responsibility falls on you to pay promptly the arrears to avoid enforcement proceeding.
