Analysis Of Taxpayer Compliance With Rural And Urban Land And Building Taxes In Relation To Local Own-Source Revenue Collections

Abstract

Background Local Own-Source Revenue (PAD) is a key indicator for measuring regional financial autonomy. One of the major sources of PAD is the Rural and Urban Land and Building Tax (PBB-P2). However, the level of taxpayer compliance in paying PBB-P2 remains an issue that can affect the optimization of PAD revenue. The research problem in this study is to determine the level of PBB-P2 taxpayer compliance and whether such compliance affects Local Own-Source Revenue (PAD) in Baubau City. The objective of this study is to analyze the level of compliance among taxpayers of the Rural and Urban Land and Building Tax (PBB-P2) and its effect on Local Own-Source Revenue (PAD) in Baubau City. The study employed a quantitative approach using secondary. The sample a consisting of PBB-P2 targets and actual collections, as well as PAD figures for the 2021–2025 period, obtained from the Baubau City Revenue Agency (Bapenda). The data were analyzed using descriptive analysis and simple linear regression with the aid of SPSS. The results indicate that the compliance rate of PBB-P2 taxpayers remains fluctuating. The t-test results showed a significance value of 0.025 ≤ 0.05, indicating that PBB-P2 taxpayer compliance has a significant effect on Baubau City’s PAD. It is recommended that the local government enhance public awareness campaigns, service delivery, and the enforcement of tax penalties to encourage increased taxpayer compliance and optimize PAD.