IMPACT OF CHANGES IN LOCAL TAX LAW AND LEVIES FINANCIAL CAPABILITY OF DISTRICT / CITY IN JAVA

Abstract

The implementation of regional autonomy that has been running for ten years still shows degree of dependence of local government district / city government against punsat so intense that the average contribution of local revenues to total revenues of the district / city is less than 10%. Birth of law number 28 of 2009 on local taxes and levies with effect from January 1, 2010 which includes the expansion and upgrading source of local revenue from local taxes and levies diharakan able to increase the financial capacity of the district / city so that the degree of independence of the area increases , This research aims to analyze the effectiveness of the changes in tax laws and local levies to the financial capacity of districts / cities in Java. The population of this study included all regencies / cities in Java, except the province of special areas of the capital Jakarta, with the consideration that the district / city in Jakarta is not an autonomous region but only the administrative area. The number of districts / cities in this study 114 districts / cities which consists of 8 districts / cities in Banten province, 28 districts / cities in West Java province, five districts / cities in the province of Yogyakarta Special Region, 35 districts / cities in Central Java province and 38 districts / cities in East Java province. The observation period from 2010 to 2013. The data used are secondary data obtained from the Central Bureau of Statistics (various publications). Data analysis method used was descriptive by describing phenomena.                   This study failed to find that the financial capacity of districts / cities in Java, as measured by the average contribution of local revenues to total local revenue showed a rising trend with the details: Banten Province in 2010 of 13.13%, in 2011 amounted to 18.69% , in 2012 amounted to 20.60% and in 2013 amounted to 22.04%; West Java in 2010 amounted to 10.60%, in 2011 amounted to 13.00%, in 2012 amounted to 14.74% and in 2013 amounted to 16.18%; Central Java in 2010 of 10.03%, in 2011 amounted to 9.82%, in 2012 11.03% and in 2013 amounted to 12.35%; East Java in 2010 amounted to 8.63%, in 2011 amounted to 9.94%, in 2012 amounted to 11.19% and in 2013 amounted to 12.29%; Yogyakarta Special Region in 2010 amounted to 11.63%, in 2011 amounted to 12.94%, in 2012 amounted to 15.05% and in 2013 amounted to 16.79%. The results showed that the change in local tax laws and levies effectively able to improve the financial capacity of districts / cities in Java.