The Contribution of Urban Land and Building Tax (PBB-P2) to the Regional Revenue and Expenditure Budget (APBD) Deli Serdang District

Abstract

Urban Rural Land and Building Tax is a tax that has just been transferred from the center to districts/cities and is one of the sources of local revenue that is used to finance regional development, so it is necessary to conduct research on its growth rate, effectiveness and contribution to the Regional Revenue and Expenditure Budget (APBD). The purpose of
this study was to determine the level of effectiveness, growth and contribution of Rural-Urban Land and Building Tax to the Regional Revenue Agency of Deli Serdang Regency in 2012-2021. This research uses a descriptive method. The data used is secondary data. The results of the analysis show that the average growth in Rural Urban Land and Building Tax is quite large, namely 14.11% with the highest PBB-P2 growth in 2012 reaching 38%. The management of Urban Rural Land and Building Tax in Deli Serdang Regency during the 2012-2021 period is classified as ineffective, with an average effectiveness rate of 64.90%. The effectiveness of Rural Urban Land and Building Tax in the last 10 years between 55.18%-82.11% The highest PBB-P2 effectiveness occurred in 2019. The average contribution of Rural Urban Land and Building Tax to the Regional Revenue and Expenditure Budget (APBD) Deli Serdang Regency in the last 10 years, namely 2012-2021, was 4.6% per year. The highest PBB-P2 contribution to the Regional Revenue and Expenditure Budget (APBD) in 2020 reached 5.40%. The effectiveness, growth, and contribution of Rural Urban Land and Building Tax to the 2012-2021 Regional Revenue and Expenditure Budget (APBD) has an average effectiveness of 64.90% and an average contribution of 4.6%. This figure is not enough to meet expectations as a source of regional income, so the local government must carry out the right program so that people comply with paying taxes every year with the aim of obtaining funds for regional development.