Analysis of Local Taxes of Tarakan City

ABSTRACT : (This research aimed to discover: 1) the local taxes contribution per sector to the Local OwnSource Revenue (PAD ~Indonesian) of Tarakan City from 2010 to 2019; 2) the tax effort achievement level inTarakan City from 2010 to 2019; 3) the local taxes acceptance efficiency level in Tarakan City from 2010 to2019; 4) the local taxes acceptance effectiveness level in Tarakan City from 2010 to 2019; 5) the local taxesacceptance elasticity per sector in Tarakan City from 2010 to 2019.This research used the quantitativedescriptive method. The data used were from 2010 to 2019 data. The data used were secondary data. Thecollected data were the official data from the Department of Management of Regional Revenue, Finance andAssets (DPPKAD ~Indonesian) and the Statistics Central Agency (BPS ~Indonesian) of Tarakan City.Theresults showed that the local taxes contribution to the PAD of Tarakan City from 2010 to 2019 was 43.3% eachyear. However, by looking at the local taxes contribution per sector, the average taxes contribution was less than1% each year. The tax effort in Tarakan City was averagely 0.15% each year. The efficiency level of TarakanCity averagely reached 4.87% each year. The effectiveness level of Tarakan City averagely was 96% each year.The average elasticity level was 0.03% each year. The Elasticity Taxes for hotels was 1.23% in average, 1.09%for restaurants in average, 5.02% for the severance Type-C in average, 99.43% for the underground water inaverage, 50.34% for swifts’ nest in average, and 3.34% for the Acquisition Duty of Right on Land and Building(BPHTB ~Indonesian); and less than 1% for other taxes sector elasticity.

KEYWORDS: Tax Effort, Efficiency, Effectiveness, Elasticity, Local Taxes, Local Own-Source Revenue