The Kogi State Government has overhauled its property tax system, repealing the existing ground rent and tenement rate laws in favour of a new, unified Land Use Charge.
The move, effective July 1, aims to alleviate residents’ burden of “multiple taxation” and improve revenue administration.
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The Executive Chairman of the Kogi State Internal Revenue Service (KSIRS), Sule Enehe, explained the rationale behind the change during a recent sensitisation tour in Anyigba, in the state’s eastern senatorial district.
Represented by Hassana Salawu, the Director of Ministries, Departments and Agencies (MDAs) for KSIRS, Mr Enehe said the new Land Use Charge is designed to be a simpler, annual payment, significantly less than the combined cost of the previous two taxes.
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According to the KSIRS chairman, the new legislation offers several benefits, including: accurate property valuation, enabling more precise assessments for taxation; property identification and registration, creating a comprehensive record of properties within the state; land allocation, facilitating the allocation of land for government projects and social amenities; employment opportunities, generating jobs for enumerators at the local level; and a reliable property database, informing better decision-making for the state.
Under the new regime, he said the tax obligation will primarily target properties used for lease and commercial purposes.
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The new law also outlines several exemptions from the Land Use Charge, ensuring certain properties are not subject to the levy. These include properties owned and occupied by religious bodies for public worship or education, public cemeteries and burial grounds, non-profit educational institutions and public libraries, palaces of recognised traditional rulers, community properties such as town halls used for meetings, properties owned and occupied by pensioners, partial reliefs for physically challenged individuals, and properties used for charitable purposes.
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In terms of revenue distribution, 40 per cent of the collected tax will be allocated to local governments, with the remaining 60 per cent going to the state government. The government emphasised that this revenue will be earmarked for infrastructure development, environmental maintenance, and the provision of adequate security.
The statewide sensitisation tour, which began earlier this month, is intended to inform stakeholders about the new Land Use Charge law and encourage compliance with the enumeration process.
Abu Okolo, the traditional ruler of Anyigba, commended the sensitisation efforts and pledged to disseminate the information to his people.
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