The Radio Advocacy Program of Kwara State Internal Revenue Service (KW-IRS),”MY TAX & I”, explains Property Tax collection.
Sensitizing taxpayers on Property Tax Collection on the third edition of My Tax & I for Q3 were Head, Property Tax & a Manager at the Property Tax Department of KW-IRS, Olanike Wole-Oke and Yomi Ajiboso respectively.
Did You Know?
Property enumeration is the collation of property data, land survey and delineation of boundaries in different LGAs of Kwara State with the aim of computing assessment and generation of bills.
Property enumeration is a strategic tool of economic planning. It encourages e-governance, enhances assessment for accurate bill generation, promotes business continuity process and improves IGR. It also helps give easy accessibility to properties.
Property enumeration is done from time to time and the process is continuous.
Every property should be enumerated for record purpose. Although, not all properties are chargeable.
Property Tax is the levy charged on Property owners annually by the Government. This levy is required to be paid to the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state or local government authority. It can also be defined as the annual amount paid by a land owner to the government or the municipal corporation of an area.
In Kwara, Kwara State Internal Revenue Service (KW-IRS) is saddled with the responsibility of collection of property tax on behalf of the Government.
By law, pure religion institutions such as Churches and Mosques do not pay Land charges, but religious places that engage in commercial activities like schools, event centres and so on, MUST pay all taxes including Property tax on the area of land occupied by such activities.
Section 7 (i) of the Land Use Act, stated certain places exempted from payment of the Land Use Charge, these are:
i. Property used exclusively for worship and having Certificate of Occupancy and Town Planning approval.
ii. Public Cemeteries and Burial Grounds.
iii. Palaces of recognized Emirs, Obas and Chiefs of the State.
iv. Property used as Public Library.
v. Recognized and registered non-profit making institutions and places used solely for community Games, sports or re-creation for the benefit of the general public.
vi. Any property specifically exempted in a gazette by the Governor.
vii. Properties used for a charitable or benevolent purpose for the benefit of the general public.
viii. Other exemptions are granted ONLY by Kwara State Governor.
Property tax can be enforced.
According to Kwara State Land Charge Law, “where a Property owner fails to pay within a stipulated time line, graduated penalties will be paid on the Property”
Land Charge is the annual rent payable for occupation of land for particular use.
Both the land owners and occupiers are liable to payment of Land Charge. The owner of the Property is expected to pay, but in a situation where the owner is not available, the occupier of the property should pay on his/her behalf as the law empowers the collecting authority (KW-IRS) to by a notice in writing to appoint any person who has the management of a property or an occupier to be the agent of the owner, and may be required to pay Land Charge by the means of the owner held by him.
Land charge is chargeable for use and occupation of land both titled and untitled and it is payable to the State Government.
Land charge and Tenement rate is paid annually. It is paid as soon as assessment (bill) is served on the Property owner in the year of assessment
Tenement Rate is an annual charge on any improvement on the land (i.e. lands with buildings on it which is held or occupied as a distinct or separate holding or tenancy or pier but does not include land without building).
Tenement rate is collectible by Local Government Area(s) while Land Charge is collectible by the State Government; but KW-IRS presently collects on behalf of both State and Local governments for ease of revenue administration and remits whatever is collected on behalf of the Local Government accordingly.
A person who refuses or neglects to comply with the provision of the law on Land charge when required can be punished according to the law.
Section 17B states that any person that prevents or hinders or obstructs authorized officers in the course of their lawful duties by removing from or damages or destroys a property identification plaque on the building commit an offence and shall be liable on conviction to a fine not exceeding N20, 000.00 or to imprisonment for a term not exceeding 3 months or both.
Section 18 also states that any person who incites another person to refusing to pay any rate under this law on or before the day on which it is payable or incites or assists any person to misrepresent in anyway commits an offence and shall be liable on conviction to a fine not exceeding N20, 000.00 or imprisonment for a term not exceeding 2 months or both.
Objection can be raised on land charge bill, 30 days of receipt of the land charge bill. The objection must be put into writing addressed to the Director General, Bureau of Lands and they must state clearly the grounds of objection supported by necessary documents. The KW-IRS could be copy for required follow up.
Properties are classified based on their use as stated: “Commercial; Residential; Schools; Industrial; Agriculture; Petroleum; Hotel, Hospital; Religion.”
C of O is Certificate of Occupancy and it is issued by the State Government to certify an existing interest in land and landed properties. It is the highest title that can be possessed over landed properties.
Holders of interest over a land and those that have ownership claim over a land are expected to collect C of O. This might be Statutory Right, Customary Right or Deemed Right.
i. Statutory Right: – This is right given by the State government over a land for a particular use and for definite number of years. For example: Residential-99years, other use-60years.
ii. Customary Right: – This right is given by the Local government over a land for particular use and for definite number of years.
iii. Deemed right: – This is existing right that one possesses over a land prior to the promulgation of Land Use ACT. For example. Customary land holders, family land sold by members of the family. The right can be certified by C of O.
All revenue payments are to be made into the Kwara State Government IGR Accounts through the online payment platforms provided by the State. That is REMITA, QUICKTELLER, PAYARENA and others to be communicated in due course.
KW-IRS COMMUNCATION CHANNELS
• Website: www.kw-irs.com
• Customer Care line: 07006959477
• Email: firstname.lastname@example.org
• Facebook: KwaraIRS
• Twitter: @KwaraIRS
• Instagram: @kwirs
• Visit us at our Corporate Head Office on 27, Ahmadu Bello way, GRA, Ilorin OR any of our offices within Ilorin and across all Local Government Areas of the State
For ease of Revenue administration, among other benefits, the harmonized collection was introduced as an approach to effective collection by and for the State. This tool is being used in collection of revenue meant strictly for the State and for few collectible items of Local Government as agreed with the LGAs for efficiency. These collectibles on behalf of LGAs are reported and remitted accordingly at the end of each month. Such collections include Tenement rate, Radio License, Citizenship etc.
Taxpayers in Kwara State could transact directly with the official revenue offices of KW-IRS at the various KW-IRS offices and payment points situated in the 16 Local Government Areas across the State and ensure all payments are receipted for accordingly.
Corporate Affairs Department, KW-IRS