THE EFFECT OF MOTOR VEHICLE TAX ON LOCAL

REVENUE
The preparation of this research proposal report is to fulfill one of the tasks of the
English Of Occupation Course

Arranged By :
Anjani Yulizar (165134001)
Habibah Nurul Fitri (165134011)
Rika Septi Rahmawati (165134023)
Rina Amalia Putri Wahyuni (165134024)
Siti Meylina Purnamasari (165134026)

ACCOUNTING DEPARTMENT
POLYTECHNIC STATE OF BANDUNG
2019
 PREFACE

Praise and gratitude to the author of the presence of Allah Almighty for all the abudance
of grace so that the author can complete the preparation of this research proposal with the title
“The Effect of Motor Vehicle Tax on Local Revenue”
The preparation of this research proposal report is to fulfill one of the tasks of the English
Of Occupation Course in Polytechnic State of Bandung. The authors would like to thank the
parties who participated in helping to complete this report optimally both material and non-
material.
The author realizes that this report is not perfect. Both in terms of language structure and
material aspects delivered. Therefore, criticism and suggestions for writers will be very helpful
so that it can be used as improvements for future. I hope this report can provide benefits for
readers and especially for writers.

Bandung, December 2019

Author

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 TABLE OF CONTENTS

PREFACE...................................................................................................................................................i
TABLE OF CONTENTS..........................................................................................................................II
CHAPTER I PRELIMINARY................................................................................................................1
1.1 Background..................................................................................................................................1
1.2 Formulation of the problem.........................................................................................................2
1.3 Scope of problem.........................................................................................................................3
1.4 Research purposes.......................................................................................................................3
1.5 Benefits of research.....................................................................................................................3
CHAPTER II LITERATURE REVIEW.............................................................................................4
2.1 Theoretical Basis.........................................................................................................................4
2.1.1 Tax...........................................................................................................................................4
2.1.1.1 Definition and Function of Tax............................................................................................4
2.1.1.2 Elements and Tax Classification..........................................................................................5
2.1.1.3 Tax Collection Terms and Systems......................................................................................8
2.1.2 Definition of Contribution.....................................................................................................10
2.1.3 Motor Vehicle Tax (PKB).....................................................................................................10
2.1.3.1 Definition of Motor Vehicle Tax.......................................................................................10
2.1.3.2 Legal Basis and Basis for Motor Vehicle Tax Imposition..................................................10
2.1.3.3 Objects, Subjects, and Periods of Motor Vehicles.............................................................12
2.1.4 Regional Original Revenue (PAD)........................................................................................13
2.1.4.1 Local Tax...........................................................................................................................14
2.1.4.2 Regional Retribution..........................................................................................................19
2.1.4.3 Results of Separated Regional Wealth Management..........................................................21
2.1.4.4 Other Legitimate Original Local Revenues........................................................................21
2.2 Prior Research............................................................................................................................22
2.3 Framework.................................................................................................................................25
2.4 Research hypothesis...................................................................................................................25
CHAPTER III RESEARCH METHODS..............................................................................................27
3.1 Methods / Design Research.......................................................................................................27
3.2 Operationalization Variable.......................................................................................................27

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3.3 Research samples.......................................................................................................................28
3.4 Types and Sources of Data........................................................................................................28
3.5 Method of collecting data..........................................................................................................28
3.5.1 Research Library................................................................................................................28
3.5.2 Field research.....................................................................................................................29
3.6 Methods of Analysis and Testing Hypotheses...........................................................................29

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 CHAPTER I

PRELIMINARY

1.1 Background
Local Tax is one very important source of revenue to finance the regional
administration and regional development. In Law No. 34 Year 2000 on Regional Taxes
and Levies, types of local taxes can be distinguished from the collection rights, namely:
a. Provincial Tax consisting of the Motor Vehicle Tax, Motor Vehicle Fuel Tax,
Customs of Vehicle, and Taxes Utilization of ground water and surface water.
b. Tax Regency / City that consists of advertisement tax, hotel tax, restaurant tax,
entertainment tax, street lighting tax, tax Minerals Processing Group C, and the
parking tax.
Each fiscal year, the tax revenue target area always increases, success in realizing
the target of local tax revenue does not mean local taxes to local revenue be increased.
The problems faced today are still weak in the region's ability to collect taxes that directly
affect the original income.
State income comes from the people through taxes, and / or the results of the
natural wealth in the country. Two sources it is the most important source of revenue to
the state. The income is used to finance public interest which eventually also include an
individual's personal interests such as public health, education, welfare and so on. So
where there are the interests of society, there arise so that the tax is a tax levied by the
compounds of general interest (Erly Suandy, 2008).
Tax in Indonesia can be grouped into 2 (two) parts, namely the Central Tax and
Local Tax. Based on the Law of the Republic of Indonesia Number 28 Year 2009 on
Regional Taxes and Levies, Local Taxes role is very important as a source of regional
revenue and as a pillar of regional development, because it is one of the Local Tax
Revenue Source Regions.
Under the laws of the Republic of Indonesia Number 28 Year 2009 on Regional
Taxes and Levies which entered into force on 1 January 2010 consists of five (5) types
Provincial Tax and 11 (eleven) Taxes, district or city. Provincial tax consists of motor
vehicle tax (PKB), Customs of Vehicle (BBNKB), Motor Vehicle Fuel Tax, Surface

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 Water Tax, and Tax Cigarette Tax. While tax district or city consisting of hotel tax,
restaurant tax, amusement tax, advertisement tax, street lighting tax, Tax Non Metallic
Minerals and Rocks, parking tax, Ground Water Tax, Tax Swallow's Nest, Land and
Building Tax Rural and Urban Areas, and Customs Acquisition of Land and Buildings.
Provincial taxes have the highest potential to generate local revenues that motor
vehicle tax (PKB), which is managed by the Provincial Government. Bemotor Vehicle
Tax is a tax on the ownership and / or control of a motor vehicle. Any person or entity
that owns or control of a motor vehicle required to pay tax to the regions to progress and
prosperity of the community in the local area. The following data from the years 2016-
2018 Motor Vehicles in West Java Province
Table 1. Number of motor vehicles

Year Number of Motor Vehicles

2016 6518893
2017 7635034
2018 6323654

From the table the number of vehicles from the year 2016-2018, it appears that the
potential of the motor vehicle tax (PKB) in West Java is fairly high. And it is also
potentially on the high amount of revenue from motor vehicle tax. Each fiscal year, the
tax revenue target area always increases, success in realizing the target of local tax
revenue does not mean local taxes to local revenue be increased. The problems faced
today are still weak in the region's ability to collect taxes that directly affect the original
income.
Efforts should be made Board of Revenue (BAPENDA) West Java Province
covers revenue (PAD) is to improve the effectiveness and efficiency in the collection of
motor vehicle tax.
From the description above, the researcher is interested in conducting research on:
" The Effect of Motor Vechicle Tax on Local Revenue ''
1.2 Formulation of the problem
Based on the background that have been raised, then the problem of this study can
be formulated as follows:

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 1. How big is the Motor Vehicle Tax Revenue Agency of West Java Provincial
Government
2. How big is the Local Revenue Agency Provincial Government of West Java
3. How big is the contribution of the Motor Vehicle Tax on Local Revenue
1.3 Scope of problem
Based on the description on the background of the problems above, this research
problem definition only to:
- This research is focused on motor vehicle tax affecting local revenue
1.4 Research purposes
As outlined in the formulation of the problem, this research has a purpose:
1. To find out how much the Motor Vehicle Tax on Revenue Agency Provincial
Government of West Java
2. To find out how much local revenue at the Regional Revenue Agency Provincial
Government of West Java
3. To know how big contribution to the Motor Vehicle Tax Local Revenue
1.5 Benefits of research
From what has been described previously, the researcher suggests the usefulness
of this study are as follows:
1. Theoretical usability, to better identify and explain how the relationship between
motor vehicle tax contribution to local revenue.
2. Practical Uses, namely West Java Province can find the solution of the problems
perceived to motor vehicle tax contribution relationships with local revenue.

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 CHAPTER II
LITERATURE REVIEW

2.1 Theoretical Basis

2.1.1 Tax
2.1.1.1 Definition and Function of Tax
According to Law No. 28 of 2007 concerning Taxation that tax is a mandatory
contribution to the state owed by individuals or entities that are coercive based on the
Law, with no direct compensation and used for the country's needs for the prosperity of
the people.
Meanwhile, according to Soemahamidjaja, who was later quoted by Erly Suandy
(2002; 9) taxes are mandatory contributions, in the form of money or goods, collected
by the authorities based on legal norms, in order to cover the cost of producing
collective goods and services in achieving public welfare.
From the above opinion it can be concluded that the definition of a tax is a
mandatory fee coercive with no reciprocal directly and used for the purposes of the
people. There are four tax functions, among other things:
1. Budget Function (Budgeter Function)
Taxes are a source of income for state finances by collecting funds or money
from taxpayers to the state treasury to finance national development or other state
expenditures. So that the tax function is a source of state revenue that has the purpose
of balancing state expenditure with state revenue.
2. Regulatory Function (Regulatory Function)
Tax is a tool to implement or regulate state policies in the social and
economic fields. The set functions include:
a. Taxes can be used to hamper inflation.
b. The tax can be used as a tool to encourage export activities, such as: export taxes
on goods.
c. Taxes can provide protection or protection for goods produced from within the
country, for example: Value Added Tax (VAT).
d. Taxes can regulate and attract capital investment that helps the economy to be
more productive.
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 3. Equity Function (Distribution Tax)
Tax can be used to adjust and balance the distribution of income with
happiness and welfare of the community.
4. Stabilization Function
Taxes can be used to stabilize economic conditions and conditions, such as:
to overcome inflation, the government sets high taxes, so that the amount of money
in circulation can be reduced. Meanwhile, to overcome the economic downturn or
deflation, the government reduced taxes, so that the amount of money in circulation
can be increased and deflation can be overcome.
2.1.1.2 Elements and Tax Classification
In general there are four main elements of tax based on the taxation system in
Indonesia, namely the subject of taxes, taxpayers, tax objects, and tax rates.
1. Tax Subject
The main tax element is the tax subject. The definition of the subject of tax
referred to here is a person or entity that is burdened with the tax governed by the
law. People who have met the taxable requirements are included in the tax subject, for
example individuals such as entrepreneurs, employees or business people as well as
business entities such as certain institutions or companies.
2. Taxpayers
Taxpayers are also included as one of the tax elements. Understanding
taxpayers in the tax system in Indonesia is a person or entity that according to the law
has obligations such as obtaining / looking for a taxpayer base number (NPWP) at the
Directorate General of Taxes (Directorate General of Taxes).
Its function is to calculate the amount of tax and deposit a number of tax funds
to the state treasury. Taxpayers must report the wealth and the amount of tax that they
depend on to the local tax office every year.
3. Tax Objects
The next tax element is the tax object. Understanding tax objects are objects
or objects that are subject to tax. Examples of objects that are taxed include cars,
homes, profits, buildings and so on. There is also an income tax for each income
obtained as well as a building land tax (PBB) for land and buildings owned.

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4. Tax Rates
The next tax element is the tax rate. Understanding the tax rate referred to
here is the imposition of the amount of tax that must be paid subject to tax on the tax
object to which it is borne. Tax rates are generally expressed as a percentage.
The tax system in Indonesia uses a progressive tax rate system so that the
government develops policies that differentiate tax rates according to the state of the
country's economy and development programs. There are several types of tax rates
including:
a. Progressive tax rates
b. Degressive tax rates
c. Proportional tax rate
d. Fixed tax rate
Tax grouping consists of:
1. Based on the Collection System
a. Direct Tax
Direct tax is tax which is borne by the taxpayer himself and cannot be
transferred to other people. In other words, the tax payment process must be
carried out by the taxpayer himself. Types of taxes included in direct taxes
include:
1. Income Tax (PPh).
2. Motor Vehicle Tax.
3. Land and Building Tax (PBB).
b. Indirect Tax
Indirect taxes are taxes that can be transferred to other parties because
this type of tax does not have a tax assessment letter. That is, the imposition of
tax is not done periodically but is associated with acts of action on events so
that tax payments can be represented to other parties. Some taxes that are
classified as indirect taxes:
1. Value Added Tax (VAT).
2. Import Duty Tax.
3. Export Tax.

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2. Based on its nature
a. Subjective Tax
Subjective tax is tax based on the subject while objective tax is based
on the object. A levy is called a subjective tax because it takes into account
the state of the taxpayer himself. An example of subjective tax is income tax
(PPh), which concerns about the ability of taxpayers to generate income or
money.
b. Objective Tax
Objective tax is a levy that takes into account the value of the tax
object. An example of objective tax is Value Added Tax (VAT) of goods
subject to tax.
3. Based on the Collecting Institution
a. Central Tax
Central tax is tax that is collected and managed by the Central
Government, in this case the majority is managed by the Directorate General
of Taxes (DGT). The proceeds from this type of tax levy are then used to
finance state expenditure. The following taxes are managed by the central
government:
1. Income Tax (PPh)
2. Value Added Tax (VAT)
3. Sales Tax on Luxury Goods (PPnBM)
4. Stamp Duty
5. Land and Building Tax (PBB estate, forestry, mining)
b. Local tax
Regional taxes are taxes collected and managed by the Regional
Government both at the provincial and district / city levels. The proceeds from
this type of tax levy are then used to finance local government spending. The
following taxes are managed by local governments:
1. The provincial tax consists of:
• Vehicle tax.
• Transfer of Motor Vehicle Title Fee.

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 • Motor Vehicle Fuel Tax.
• Surface Water Tax.
• Cigarette Tax.
2. Regency / city tax consists of:
• Hotel Tax.
• Restaurant tax.
• Entertainment Tax.
• Advertisement tax.
• Street Lighting Tax.
• Non-Metallic Mineral Tax and Assistance.
• Parking Tax.
• Groundwater Tax.
• Swallow Bird Nest Tax.
• Rural and Urban Land and Building Tax.
• Fees for Acquisition of Land and / or Building Rights.
2.1.1.3 Tax Collection Terms and Systems
Terms of tax collection are the basic principles that must be present in every tax
collection activity. Terms of tax collection include:
1. Terms of Justice
Tax collection must be based on justice, both in the legislation and in the
implementation of tax collection. This foundation of justice is a condition that must be
met to achieve justice for the community. Examples of such fair include:
a. Taxpayers have rights and obligations that are regulated by law.
b. Every citizen who qualifies as a taxpayer must deposit his tax.
c. There are sanctions for tax violations that occur.
2. Juridical Requirements
Tax collection is always based on applicable laws. One of the laws governing
tax collection is Law Number 28 of 2007 concerning General Provisions for Taxation.
With the regulation in the form of a law, the government provides legal guarantees for
the implementation of tax collection activities.
3. Economic Requirements

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 Tax collection may not interfere with economic activities that can result in the
decline of the national economy. For example, tax collection may not interfere with
production activities or ongoing trade.
4. Financial Requirements
Tax collection must be done efficiently and effectively so that the results
obtained are maximum. Efficient means that tax collection must be done easily, right
on target, on time and minimal costs.
5. Simple Terms
The tax collection system must be simple and easy to understand for taxpayers.
A simple tax collection system will help taxpayers to report their taxes and encourage
the public to meet tax obligations. Thus, state revenues from taxes will increase.
The tax collection system is a mechanism used to calculate the amount of tax
that must be paid by taxpayers to the state. In Indonesia, there are 3 types of tax
collection systems, namely:
1. Self-Assessment System.
Self-Assessment System is a tax collection system that imposes the
determination of the amount of tax that needs to be paid by the taxpayer concerned.
In other words, the taxpayer is the party who plays an active role in calculating,
paying, and reporting the amount of tax to the Tax Service Office (KPP) or through
an online administration system that has been created by the government.
The role of the government in this tax collection system is as a supervisor of
the taxpayers. Self-assessment system is applied to the type of central tax. An
example is the type of VAT and income tax. This one tax collection system came
into force in Indonesia after the tax reform period in 1983 and is still valid today.
2. Official Assessment System.
Official Assessment System is a tax collection system that imposes
authority to determine the amount of tax owed to the tax authorities or tax officials
as tax collectors. In the Official Assessment tax collection system, taxpayers are
passive and the tax payable only exists after the tax assessment letter is issued by
the tax authorities. This tax collection system can be applied in the payment of
Building Land Tax (PBB) or other types of local tax.

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 3. Withholding Assessment System.
In the Withholding System, the amount of tax is calculated by third parties
who are not taxpayers and not the tax authorities / tax authorities. An example of a
holding system is a cut in employee income by the treasurer of the relevant agency.
So, employees no longer need to go to the Tax Office to pay the tax. The types of
taxes that use the withholding system in Indonesia are Income Tax Article 21,
Income Tax Article 22, Income Tax Article 23, Final Income Tax Article 4
paragraph (2) and VAT. Well, as proof of tax payment using the tax collection
system, this is usually in the form of proof of proof or proof of collection.
2.1.2 Definition of Contribution
According to Dany H. (2006) contribution is a form of material (money)
contribution that can be supported or donated. This contribution can be done collectively
as done in one of the sites collected in community development.
2.1.3 Motor Vehicle Tax (PKB)
2.1.3.1 Definition of Motor Vehicle Tax
Based on Government Regulation No. 65 of 2001 concerning Regional Taxes
states that the Motorized Vehicle Tax is a tax on the ownership or control of all two or
more motorized vehicles and their couplings which are used in all types of road, and
which serves to convert a particular energy resource into a motorized motor power of
the vehicle concerned, including heavy equipment and large equipment.
2.1.3.2 Legal Basis and Basis for Motor Vehicle Tax Imposition
Basic motor vehicle tax laws:
1. Law of the Republic of Indonesia Number 28 Year 2009 concerning Regional Taxes
and Regional Levies.
2. Regulation of the Minister of Home Affairs Number 23 of 2011 concerning Basic
Calculations for the Imposition of Motorized Vehicle Tax and Customs for Transfer
of Motorized Vehicle Names.
3. West Java Provincial Regulation Number 13 of 2011 concerning Regional Taxes.
4. West Java Governor Regulation Number 68 of 2011 concerning Basic Calculation of
Motor Vehicle Tax Imposition and Transfer of Motor Vehicle Title Fee.

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 The basis for the imposition of motor vehicle tax as stipulated in Article 5 of the
Law of the Republic of Indonesia Number 28 of 2009 is the product of two main
elements, namely:
1. Selling Value of Motorized Vehicles (NJKB); and
2. Weights that reflect the relative level of road damage and / or environmental
pollution due to the use of Motorized Vehicles.
Specifically for Motorized Vehicles that are used outside public roads, including
heavy equipment and large equipment as well as vehicles in water, the basis for
imposing a Motor Vehicle Tax is NJKB. Vehicle weights are expressed in coefficients
whose values are 1 or greater than 1, with the following meanings:
1. A coefficient equal to 1 means road damage and / or environmental pollution by the
use of the Motorized Vehicle is considered to be within tolerance limits; and
2. A coefficient greater than 1 means that the use of the Motorized Vehicle is
considered to exceed the tolerance limit.
For calculating the weight of a vehicle that applies in West Java Province the
amount is determined based on the Regulation of the Governor of West Java Number 68
of 2011, namely
1. For the weight of sedan, station sedans, jeeps, stationwagons, minibuses, microbuses,
buses, heavy equipment, large moving equipment, motorbikes and the like are fixed
at 1.00 (one point zero zero)
2. The weight of motor vehicles of the type of goods / load cars, special vehicles and
trailer / attach trains, is set at 1.30 (one point three zero).
The Selling Value of Motorized Vehicles (NJKB) is determined based on the
General Market Price of a Motorized Vehicle. General Market Prices are average
prices obtained from various accurate data sources. NJKB is determined based on the
General Market Price in the first week of December of the previous Fiscal Year. In the
event that the Public Market Price of a Motorized Vehicle is unknown, NJKB can be
determined based on part or all of the factors:
1. Motorized Vehicle Prices with the same cylinder contents and / or power units;
2. Use of Motorized Vehicles for public or private use;
3. Motorized Vehicle Prices with the same Motor Vehicle brand;

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 4. Motorized Vehicle Prices with the same year of Motorized Vehicles manufacturing;
5. Motorized Vehicle Prices with Motor Vehicle makers;
6. Prices of Motorized Vehicles with similar Motorized Vehicles; and
7. Motorized Vehicle Prices are based on Goods Import Notification documents
(PIB).
Vehicle weight is calculated based on factors:
1. Axle pressures, which are distinguished on the basis of the number of axles / axles,
wheels, and weight of the Motor Vehicle;
2. Types of motor vehicle fuel that are distinguished by diesel, gasoline, gas,
electricity, solar power, or other types of fuel; and
3. Type, usage, year of manufacture, and characteristics of Motorized Vehicle engines
which are distinguished by type of 2 stroke or 4 stroke engine, and cylinder
contents.
The basic calculation of the imposition of Motor Vehicle Tax is stated in a
table determined by the Minister of Home Affairs Regulation after being considered
by the Minister of Finance. The basic calculation of the imposition of Motor Vehicle
Tax as defined in the Minister of Domestic Affairs Regulation No. 23 of 2011, NJKB
is used as the basis for the imposition of BBN-KB. The basis for imposing PKB for
motorized public transport vehicles is 60% (sixty percent). The basis for the
imposition of PKB for motorized vehicles for public transport of goods is set at 80%
(eighty percent).
While the basic calculation for the imposition of PKB for motor vehicles
operated in water is determined based on the sum of the selling value of the frame /
body and the selling value of motor vehicles driving motorized water. NJKB for water
operated motor vehicles is based on the HPU of a water operated motor vehicle in the
first week of December of the previous year. The selling points of the body / frame of
motor vehicles operated in water are distinguished by type, gross contents (GT / gross
tonnage) between GT 5 to GT 7, function, and age of the frame / body. The selling
points of motor vehicles which operate in water are differentiated according to horse
power and age of the motor.
2.1.3.3 Objects, Subjects, and Periods of Motor Vehicles

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 The object of Motor Vehicle Tax is the ownership and / or control of Motorized
Vehicles. Included in the definition of Motorized Vehicles are wheeled vehicles and
their couplings, which are operated on all types of road and water-operated motorized
vehicles with a gross size of GT 5 (five Gross Tonnage) up to GT 7 (seven Gross
Tonnage). Excluded from the understanding of Motorized Vehicles are:
1. Train;
2. Motorized Vehicles that are solely used for the purposes of national defense and
security;
3. Motorized vehicles owned and / or controlled by embassies, consulates,
representatives of foreign countries with the principle of reciprocity and international
institutions that obtain tax exemption facilities from the Government; and
4. Other tax objects stipulated in Regional Regulations.
The subject of motor vehicle tax is an individual or entity that owns and / or
controls a motor vehicle. Motor Vehicle Taxpayers are individuals or entities that own
Motor Vehicles. In the case of Corporate Taxpayers, their tax obligations are
represented by the management or proxy of the Agency.
Based on Article 8 of the Law of the Republic of Indonesia Number 28 Year
2009, Motor Vehicle Tax is imposed for a period of 12 (twelve) consecutive months
starting from the time of registration of Motorized Vehicles. Motor Vehicle Tax is paid
at the same time in advance. For Motorized Vehicle Taxes due to force majeure the Tax
Period is not 12 (twelve) months, restitution on taxes that have been paid can be paid for
the portion of the Tax Period that has not yet been passed. For vehicles that have been
registered, a part of the month that exceeds 15 (fifteen) days is counted as one full
month. Further provisions regarding the procedure for implementing restitution are
regulated by a Governor Regulation. The results of the Motor Vehicle Tax revenue of at
least 10% (ten percent), including those collected to the district / city, are allocated for
the construction and / or maintenance of roads as well as upgrading modes and means of
public transportation.
2.1.4 Regional Original Revenue (PAD)
The definition of regional own-source revenue is based on Law Number 33 of
2004 concerning Fiscal Balance between the Center and the Regions Article 1 number

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 18 that "Regional own-source revenue, here in after referred to as PAD, is the revenue
obtained by the region which is levied based on regional regulations in accordance with
statutory regulations".
2.1.4.1 Local Tax
Regional Tax is a mandatory contribution to the area owed by individuals or
entities that are forced based on the law with no direct compensation and is used for
regional purposes for the greatest prosperity of the people. This understanding is
contained in the Law on Regional Taxes and Regional Retribution No. 28/2009.
Just like the central tax, local taxes are many types. Regional taxes are divided
into two parts, namely the Provincial Tax and the Regency / City Tax. Each of these
sections has their respective types.
a. Provincial Tax
1. Motor Vehicle Tax and Vehicles Over Water
Motor Vehicle Tax is a tax on all wheeled vehicles used on all types of
roads both land and water. This tax is paid in advance and is repaid for a period
of 12 months or 1 year. The rates charged for motor vehicles vary, here are the
details:
• For the ownership of the first motor vehicle by 2%, then for the second motor
vehicle by 2.5% and will increase for ownership of each motor vehicle
subsequently by 0.5%.
• For the ownership of motorized vehicles by the agency, the tax rate is 2%.
• Share of motorized vehicle ownership by the central and regional
governments of 0.50%.
• Share of heavy equipment motorized vehicle ownership of 0.20%.
2. Motor Vehicle Transfer Fee Tax (BBNKB)
According to Regional Regulation No. 9 of 2010 concerning Motor
Vehicle Transfer Fee (BBNKB), Motor Vehicle Transfer Fee is a tax on the
transfer of ownership of motorized vehicles as a result of a two-party agreement
or unilateral manufacture or circumstances due to buying and selling,
exchanging, granting, inheritance, or entry into a business entity. BBNKB rates,
here are the details:

14
 • Tariffs for Transfer of Motor Vehicle Names are determined as follows:
1. The first submission is 10%.
2. Second surrender and so on by 1%.
• Specifically for motor vehicles with heavy equipment and large equipment
that do not use public roads, the tax rate is set as follows:
1. The first submission was 0.75%.
2. Second and subsequent surrender of 0.075%.
3. Motor Vehicle Fuel Tax (PBB-KB).
Motorized vehicle fuel referred to are all types of fuels both liquid and
gas used for motor vehicles. This PBB-KB tax is levied on motor vehicle fuel
that is provided or deemed useful for motorized vehicles, including fuel used for
vehicles operating on water. The PBB-KB tax is regulated in Regional
Regulation Number 10 of 2010 concerning Motor Vehicle Fuel Tax. PBB-KB
Rates:
• Motor Vehicle Fuel Tax Tariff is set at 5%
• Motor Vehicle Fuel Tax Rates as referred to in the previous point, can be
changed by the Government by Presidential Regulation, in terms of:
1. An increase in world oil prices exceeds 130% from the assumption of
world oil prices stipulated in the Law on the State Budget for the current
year.
2. It is necessary to stabilize the price of fuel oil for a maximum period of 3
years from the enactment of Law Number 28 of 2009 concerning Regional
Taxes and Regional Levies.
• In the event that the world oil price as referred to in the second point a is back
to normal, the Presidential Regulation is revoked within a maximum period of
2 months.
4. Collection of Tax and Utilization of Underground Water
The taking and / or utilization of ground water is any activity of extraction
and utilization of ground water which is carried out by means of excavation,
drilling or by making buildings for water use and / or other purposes.
Groundwater Tax is obtained by recording the debit recording tool to determine

15
 the volume of water taken in the context of groundwater control and the issuance
of a Regional Tax Assessment Letter. Tax rates for extraction and utilization of
underground water
• The basis for tax is the value of obtaining ground water
• Groundwater acquisition value is expressed in rupiah units calculated based
on the following factors:
1. Type of water source.
2. Location / zone of extraction of water sources.
3. The purpose of taking or using water.
4. The volume of water taken or used.
5. Water quality.
6. The level of environmental damage caused by the taking or utilization of
water.
• Calculation of Groundwater Acquisition Value as referred to in paragraph (2)
by multiplying the volume of water taken with the water base price.
• Calculation of the Basic Water Price as referred to in paragraph (3) by
multiplying the water value factor by the Raw Water Price.
• Groundwater Acquisition Value and Raw Water Price as referred to in
paragraph (3) and paragraph (4) are determined by the Mayor Regulation
• The Ground Water Tax rate is set at 20%.
• The principal amount of the groundwater tax payable is calculated by
multiplying the rate on the basis of taxation.
5. Cigarette Tax
Cigarette Tax is a levy on cigarette excise tax collected by the central
government. The tax object of the Cigarette Tax is a type of cigarette which
includes cigarettes, cigars and leaf cigarettes. Cigarette consumers automatically
pay cigarette taxes because WP pays cigarette taxes together with the excise tax
purchase. Taxpayers who are responsible for paying taxes are cigarette
manufacturers / cigarette producers and importers who have licenses in the form
of excisable businessman identification numbers. The tax subjects of this cigarette
tax are cigarette consumers. Cigarette tax rates of 10% of cigarette excise tax are

16
 levied by government agencies that are authorized to collect taxes together with
cigarette excise tax.
• The basis for taxation is the value of groundwater certification
• Groundwater acquisition value is expressed in rupiah units calculated based
on the following factors:
1. Type of water source.
2. Location / zone of extraction of water sources.
3. The purpose of taking or using water.
4. The volume of water taken or used.
5. Water quality.
6. The level of environmental damage caused by the taking or utilization of
water.
• Calculation of the Groundwater Acquisition Value as referred to in paragraph
(2) by multiplying the volume of water taken with the water base price.
• Calculation of the Basic Water Price as referred to in paragraph (3) by
multiplying the water value factor by the Raw Water Price.
• The value of ground water acquisition and the price of raw water as referred
to in paragraph (3) and paragraph (4) are determined by the Mayor
Regulation
• The Ground Water Tax rate is set at 20%.
• The principal amount of the groundwater tax payable is calculated by
multiplying the rate on the basis of taxation.
b. Regency / City Tax
1. Hotel Tax
Hotel Tax is funds / fees collected on accommodation service providers
provided by a particular business entity that has more than 10 rooms / rooms. The
tax is levied on facilities provided by the hotel. The hotel tax rate is 10% of the
amount payable to the hotel and the hotel tax period is 1 month.
2. Restaurant Tax

17
 Restaurant Tax is a tax that is levied on services provided by restaurants.
Restaurant tax rate of 10% of the cost of existing services provided by a
restaurant.
3. Entertainment Tax
Entertainment Tax is a tax that is imposed on entertainment services that
have fees or have fees collected in them. The object of entertainment tax is the
one who organizes the entertainment, while the subject is those who enjoy the
entertainment. The tariff range for this entertainment tax is 0% -35% depending
on the type of entertainment being enjoyed.
4. Billboard Tax
Advertisement Tax is tax that is taken / collected on objects, tools, deeds,
or media whose forms and patterns are designed for commercial purposes to
attract public attention. Usually this billboard includes boards, billboards, fabric
billboards, and so forth. However, there are tax exemptions for billboards such as
billboards from the government, billboards via the internet, television,
newspapers, and so on. The rate for this advertisement tax is 25% of the bill's
rental value.
5. Road Lighting Tax
Road Lighting Taxes are taxes that are levied on the use of electricity,
both self-generated and from other sources. This information tax rate varies,
depending on its use. The following is the street lighting tax rates are divided into
3, namely:
a. Road Lighting Tax rates provided by PLN or not PLN used or consumed by
industry, petroleum mining and natural gas, by 3%.
b. The street lighting tax rates originating from PLN or not PLN that are used or
consumed other than those referred to in the first point are 2.4%.
c. The use of self-generated electricity, the street lighting tax rate is set at 1.5%.
6. Non-Metallic Mineral and Rock Taxes
Non-Metallic Mineral and Rock Taxes are taxes imposed on non-metal
mineral extraction such as asbestos, limestone, pumice, granite, and so on.

18
 However, the tax will not apply if done commercially. The following is the Non-
Metallic Mineral and Rock Tax rate:
a. The rate for nonmetallic minerals is 25%,
b. Rates for rocks are 20%.
7. Parking Tax
Parking Tax is a tax levied on the manufacture of parking lots outside the
road body, whether related to the principal of the business or as a business /
vehicle custody. The taxable parking lot is land that has the capacity to
accommodate more than 10 4-wheeled vehicles or more than 20 2-wheeled
vehicles. The tax rate is 20%.
8. Groundwater Tax
Groundwater Tax is a tax that is levied on the use of ground water for
commercial purposes. The ground water tax rate is 20%.
9. Swallow Bird Nest Tax
The Swiftlet Nest Tax is a tax that is levied on swiftlet nest collection. The
swallow's nest tax rate is 10%.
10. Rural and Urban Land and Building Tax
The Rural and Urban Land and Building Tax is a tax that is levied on land
or buildings that are owned, controlled, or utilized. Rural and Urban Land and
Building Tax Rates:
a. Taxes for rural and urban land and building taxes with a value of less than 1
billion are 0.1%.
b. Rural and urban land and building tax with a value of more than 1 billion by
0.2%.
c. Whereas tariffs for utilization which cause disturbance to the environment are
subject to a tariff of 50%.
11. Tax on the acquisition of land and / or building rights
Land and / or Building Acquisition Tax is a tax that is levied on the
acquisition of land and buildings by certain individuals or entities, for example
through sale, exchange, grant, inheritance transactions, etc. The tax rate is 5% of
the value of the building or land acquired by a private person or a certain entity.

19
2.1.4.2 Regional Retribution
Regional levies are fees paid by the people to forced areas that have the
achievements of direct return, for example certain licensing fees, which are generally
applicable. From the definition of regional levies the element of compulsion is
economical so that it is essentially left to interested parties to pay certain licensing fees,
so that the person can obtain the necessary permits (Handbook Regional Revenue
Module: 2013). In accordance with general provisions in Law Number 28 Year 2009
Concerning Regional Taxes and Regional Levies state that regional levies are regional
levies as payments for certain services or permits that are specifically provided and / or
given by the Regional Government for the benefit of individuals or entities.
The objects of regional levies as stipulated in Law Number 28 of 2009 concerning
Regional Taxes and Regional Levies (UU PDRD) are: (a) Public Services; (b) Business
Services; and (c) Certain Licensing. In the PDRD Law which adopts a closed list system
stipulates 30 (thirty) types of regional levies that can be collected by the Provincial /
Regency / City Government. The number increased to 32 (thirty two) types with the
issuance of Government Regulation Number 97 of 2012 concerning Traffic Control
Retribution and IMTA Extension Retribution. The following types of user fees are based
on the object:
a. General service levies
1. Health Service Retribution
2. Waste / Cleanliness Levy
3. KTP retribution and Capil Deed
4. Funeral / Obliteration Retribution
5. Public Roadside Parking Levy
6. Market Service Retribution
7. Motorized Vehicle Testing Levies
8. Fire Extinguisher Inspection Retribution
9. Retribution for Map Printing Costs
10. Tera / Tera Re-service Retribution
11. Suction Latrine Retribution
12. Liquid Waste Management Levies

20
 13. Education Service Retribution
14. Telecommunication Tower Control Retribution
15. Traffic Control levies
The enactment of Law Number 24 Year 2013 concerning amendments to Law
Number 23 Year 2006 concerning Population Administration, the KTP retribution and
the Capil Act are no longer levied by the local government.
b. Business service levies
1. Levies on the Use of Regional Wealth
2. Whosesale market / department store levies
3. Auction Place Levies
4. Terminal Retribution
5. Special Parking Spots
6. Accomodation / Villa Levies
7. Port Service Levy
8. Recreation and Sports Levies
9. Crossing Levies in Water
10.Regional Business Production Sales Levies
c. Certain licensing levies
1. Permit for the sale of alcoholic beverages
2. Building Permit Retribution
3. Disturbance Permit Retribution
4. Route License Retribution
5. Fishery Business License Levies
6. IMTA Extension Retribution
2.1.4.3 Results of Separated Regional Wealth Management
This regional revenue comes from the results of regionally owned companies
and the management of separated regional property. Regional companies are all
companies established with regional capital either in whole or in part. With the aim of
creating jobs or stimulating the regional economy and is an efficient way of serving the
community and to generate regional income. In Law No. 33 of 2004 this type of income
is broken down according to the object of income which includes:

21
 1. Share of return on equity participation in regionally-owned / BUMD companies.
2. Share of profits on equity participation in a state-owned / BUMN company.
3. Share of profits on equity participation in privately owned companies or
community business groups.
2.1.4.4 Other Legitimate Original Local Revenues
Other legitimate regional own-source revenues are revenues that are not
included in the types of local taxes, regional retributions, service revenues. Other
legitimate regional businesses have an opening characteristic for local governments to
carry out activities that produce good material in the form of activities aimed at
supporting, broadening, or consolidating a regional policy in a particular field. Other
types of legitimate local revenue include the following revenue objects:
1. Proceeds from the sale of regional assets which are not separated
2. Current services
3. Interest Income
4. Advantages of the difference in the exchange rate of the rupiah against foreign
currencies
5. Commissions, deductions or other forms as a result of the sale or procurement of
goods and services by the regions

2.2 Prior Research

This study refers to several previous studies as follows:
Name and
No Research Title Research Purposes Results
Year
1 Ghani Satria The Impact of the This study aims to The APKB is
Hartono, Dewi Motor Vehicle Tax find a solution so correlated to an
Kania Award on the that the award can increase in West Java’s
Sugiharti Increase of the West increase the West PAD even though it
(2019) Java Province’s Java Province’s does not significantly
Locally Generated Locally Generated influence legal
Revenue Revenue and awareness and
optimize the compliance. It also

22
 collection of Motor does not affect the
Vehicle Tax. development of the
PKB realization in
West Java Province.
Based on the result of
interviews with the
BAPENDA, the
obstacles faced to
increase the PAD,
especially from PKB
sector, are the lack of
knowledge and
understanding of the
people regarding laws
and regulations of local
text.
2 Neni Determinants of This study aims to Result showed that
Rismayanti, taxpayer obtain evidence simultaneously,
Ahmad Rifa’I compliance test in regarding the socialization of
and Prayitno paying motor factors that effect taxation, knowledge of
Basuki (2017) vehicle tax taxpayer taxations, income
compliance in taxpayer, service tax
paying taxes on authorities, tax
motor vehicle. sanctions and
interaction between
knowledge of taxations
and socialization of
taxations significantly
effect on motor vehicle
tax compliance. Next,
partially knowledge of

23
 taxation, service tax
authorities, and tax
sanctions, positive and
significantly effect on
taxpayer compliance,
while socialization of
taxation and income
taxpayer are also not
significantly positive
effect on taxpayer
compliance.
3 Kalisma Ratna The Effect of This study aims to This study indicate that
Apriani, Icih, Taxpayers determine the knowledge of
and Asep Knowledge of influence of motorixed vehicle tax
Kurniawan Taxation knowledge about regulation has no
(2019) Regulations, tax regulations, evidence that it can
Knowledge of knowledge of affect motor vehicle
Information information on taxpayer compliance,
Services for Motor motor vehicle tax knowledge of motor
Vehicle Tax payment services vehicle tax payment
Payment and Police and police service information
Operations on operations on there is evidence that it
Compliance with motor vehicle can affect motor
Compliance Tax taxpayer vehicle taxpayer
compliance. compliance, and police
operations have no
evidence of taxpayer
compliance motor
vehicle.
4 Rr. Lulus Motor Vehicle Tax The aim of this This study indicate that
Prapti, Dwi Compliance Levels: study is to analyze the interest rates on tax
Widi Pratito An Empirical Study the effect of the penalties have the

24
 Sri Nugroho, And The application of greatest influence on
and Ardiani Determining administrative motor vehicle taxpayer
Ika Factors penalty, awareness compliance. While the
Sulistyawati of taxpayers, awareness factor of
(2018) interest rates on taxpayers actually has
tax penalties, and the smallest influence
tax payment on taxpayer
procedure on the compliance.
level of taxpayer
compliance.
5 Ratna Natalia The Effect of This aims to know The results showed
(2017) Number and Types and analyze the that all the independent
of Vehicles on effect of vehicle variables of vehicle
Motor Vehicle Tax types tax, potential types (motorcycles,
(PKB) and Local tax, contribution passenger cars, bus
Own Revenue and effectiveness cars and freight cars)
(PAD) in West of PKB as a own simultaneously had a
Kalimantan revenue in West significant effect on
Province Kalimantan PKB revenue.
Province.
2.3 Framework
Local revenues consist of the results of Local Taxes, Levies, revenue of Local Company
Income and Other Legitimate Original Local Revenues. Based on data of the last few
years, Original Local Revenues experience fluctuation. Original Local Revenues can
describe success of an area. One of the things that affect Original Local Revenues such
as Motor Vehicle Tax.
Framework

Locally-generated revenue

Target Acceptance
Revenues PKB
Agreement

Difference 25
 Contribution

Based on the picture above framework, it can be explained that knowing the
difference between the target amount of motor vehicle tax receipts to the motor vehicle
tax revenue realization, it can determine the extent of the contribution of vehicle tax to
the original income.
2.4 Research hypothesis
According to Erwan Agus Purwanto and Dyah Ratih Sulistyastuti (2007: 137),
the hypothesis is a statement or allegation that is temporary to a research problem that
the truth is still weak (not necessarily true) so it must be tested empirically. The
hypothesis to be tested in this empirically related to the presence or absence of the
influence of variable X to variable Y, where the null hypothesis (H0) is a hypothesis
about the relationship, generally formulated to be rejected. Meanwhile, the alternative
hypothesis (Ha) is a hypothesis proposed in this study, each hypothesis is formulated as
follows:
H0: Motor Vehicle Tax Receipts not significantly affect the Local Revenue Agency of
West Java Province
Ha: Motor Vehicle Tax Receipts significantly affect the Local Revenue Agency of
West Java Province

26
 CHAPTER III

RESEARCH METHODS

3.1 Methods / Design Research

This study uses a quantitative approach to data analysis and research of this kind
if the terms of the purpose and nature is a descriptive study. Descriptive study is a study
that aims to give researchers a history or to illustrate the aspects that are relevant to the
phenomenon of attention from the perspective of a person, organization or other (have
now, 2010: 159; Sugiono, 2008: 5).
Descriptive corresponding quantitative research design, this study describes and
analyzes the effectiveness of the realization of the motor vehicle tax based on targets set
by Samsat Bandung and also describe and analyze the motor vehicle tax to the regional
revenue in Bandung period of 2018. The determination of the effectiveness and
contribution done quantitatively calculate the percentage and vote by using
predetermined criteria.
On the other hand, the period in 2018 was chosen for reasons few things. First,
the reason kebaharuan that 2018 was a period to be analyzed. As for 2019, the
researchers did not use it for reasons not yet PKB overall completion of the data from
January to December 2019. Secondly, the period of 2018 have also entered a
progressive tax on motor vehicles. Officially, the progressive tax came into effect
January 2, 2012 in Bandung. In this case, the presence of a progressive tax, the
researchers were able to explain well the tax function as a regulator.
3.2 Operationalization Variable
The problem that will be investigated in this study is about revenue. As the
independent variable is the motor vehicle tax revenue (X), as the dependent variable is
revenue (Y).
Variables Variable Concept Dimension Indicator Scale
Motor Vehicle Taxes on the Motor Vehicle 1. Motor Vehicle Tax ratios
Tax (X) ownership and / or Tax Revenue revenue target per
control of a motor per month month
vehicle (MOHA 2. Realization acceptance ratios

27
 No. 32 of 2004 on of monthly motor
Regional vehicle tax
Government)
Revenue (Y) Pure source of Regional 1. Target Regional ratios
revenue is derived Income per Income per month
from a variety of month 2. Realization of Regional ratios
potential areas that Income per month
can be managed on
the decision to
grant the authority
of the central
government (Law
No. 32 of 2004 on
local laws)
3.3 Research samples
The study population is motor vehicle tax for all types of vehicles. Samples were
taken from the motor vehicle tax for vehicles with two wheels and four wheels or more
in the city of Bandung.
3.4 Types and Sources of Data
The data used in this research is secondary data obtained from Samsat Bandung.
Data used in the form of:
1. Data revenue (PAD) in Bandung
2. Data Motor Vehicle Tax in Bandung
3. Data type and number of vehicles in Bandung
4. Other data related to the research.
3.5 Method of collecting data
To obtain information and data managed in this study the data collection was
done in 2 ways, namely:
3.5.1 Research Library
This research was conducted using secondary data obtained by studying
the literature related to the chosen topic.
3.5.2 Field research

28
 To obtain the data, the researchers conducted research Revenue Agency of
West Java Province with documentation is a collection of data by using
documentation from Revenue Agency of West Java Province.
3.6 Methods of Analysis and Testing Hypotheses
Analysis of the data used in the study are:
1. Normality Test Data Regression
The test is performed to determine whether the data will be calculated already a
distributed normally or not.
2. Correlation Coefficient Test
This test is intended to determine the extent of the relationship between the
variables X and Y.
3. Test Coefficient of Determination
This test is used to determine the extent of the variable X describes the
attachment with the variable Y.
4. analysis of Contributions
To determine the contribution of Tax on Motor Vehicles against the PAD, use
the following formula:
Tax realization on Motor Vehicle
X 100 %
Realization of Regional own Revenue
The assessment criteria as follows (Kepmendagri No. 690 900 327 in Velayati et
al, 2013: 45):
1. 0% -10%, mean lacking
2. 10.1% -20%, meaning less
3. 20.1% -30%, that being
4. 30.1% -40%, mean enough
5. 40.1% -50%, meaning either
6. Above 50%, that is very good.

5. Hypothesis testing

29
 To test the hypothesis the author uses simple regression coefficient test to
determine whether the independent variable (X) effect on the dependent variable (Y).
Hypothesis test to be used is the t test, the steps used in the test as follows:
a. Determining the level of significance
The level of significance using α = 5% significance level of 5% or 0.05 is the
standard measure that is commonly used in research.
b. Determining t
T count is obtained based on the calculation table SPSS
c. Determining t table
T distribution table look at α = 5%: 2 = 2.5% (test 2 sides) with degrees of
freedom (df) nk-1. n is the number of cases and k is the number of independent
variables. Calculation of T table searched using Microsoft Excel 2007 program.
d. Specifies the test criteria.
i. 0.05 significance level with degrees of freedom (df) = nk-1
ii. If t> t table then H0 Ha accepted and rejected
iii. If t <t table then H0 rejected and accepted Ha

30