Analysis of Factors Affecting the Effectiveness and Contribution of Land and Building Tax Receiving on Regional Original Income in Bandung City

Analisis Faktor-Faktor yang Mempengaruhi Efektivitas dan Kontribusi Penerimaan Pajak Bumi dan Bangunan terhadap Pendapatan Asli Daerah di Kota Bandung

Abstract

Purpose: This research aims to analyze the contribution of Land and Building Tax (PBB) to the Local Original Revenue (PAD) of the City of Bandung, evaluate the effectiveness of PBB collection in the last five years, and identify the factors influencing the effectiveness of its collection.

Methodology: The research uses an applied approach with a descriptive method. Quantitative data is obtained from primary and secondary sources through documentation and interviews at the Regional Revenue Agency of Bandung City. The analyses used include descriptive analysis, contribution analysis, and effectiveness analysis.

Findings: The research results show that the average contribution of property tax (PBB) is 22.43% to the local revenue (PAD) of Bandung City, which falls into the very significant contribution category. However, its contribution is fluctuating and has not been consistently optimal. The average effectiveness level of collections reaches 92.88% with annual achievement variations ranging from less effective to very effective. Factors affecting effectiveness include taxpayer compliance, enforcement of sanctions, quality of service, outreach, and technical collection constraints.

Conclusion: Land and building taxes play a significant role in supporting the local revenue of Bandung City, but the fluctuations in contribution and effectiveness indicate the need for sustainable optimization strategies.

Implication: This result contributes academically to regional tax studies by demonstrating the gap between nominal and substantive effectiveness, and practically encourages local governments to strengthen taxpayer compliance and collection governance to enhance the stability of property tax contributions.