Able but Reluctant? Property Tax Success in a Kediri Ward
DOI:
https://doi.org/10.61656/sbamer.v4i2.106Keywords:
Property tax, land and building tax, tax compliance, ability to pay, tax awareness, collection systemAbstract
This study examines whether taxpayer understanding, ability to pay, awareness, and the collection system are related to the success of land and building tax collection, and it identifies which of the four makes the largest contribution. A questionnaire survey was administered to randomly selected individual taxpayers in a ward of Kediri, Indonesia. After tests of validity, reliability, normality, multicollinearity, and heteroskedasticity, the hypotheses were tested with multiple linear regression, supported by t tests, an F test, and partial correlations.The four factors are jointly and individually significant correlates of collection success. Understanding, awareness, and the collection system are positively related to it, as expected. Ability to pay is also significant, but its sign is negative, and it makes the largest contribution of the four, which challenges a simple reading of the ability to pay principle. Local tax administrators should raise understanding, show taxpayers the local benefits of the tax, and make payment easier. They should also give taxpayers who feel burdened effective channels to ask questions and file objections, and treat their engagement as an opportunity for cooperation. The study offers ward level evidence on property tax from a mid sized Indonesian city and shows that the outcome, a proactive attitude, is not the same as payment. It reports every test transparently, including the tests that produced an unexpected sign.
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Copyright (c) 2024 Mitha Otik Wiraswati, Ullif Athiyah Anggraini, Dhani Ichsanuddin
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