The Impact of Taxpayers’ Attitude toward the Effectiveness of Land and Building Tax Implementation

As has been widely known, tax is still the main source to meet financing need of urban and rural development in developing countries. This fact has made tax compliance rate serves as an important measure that can be used to predict the continuation of the on-going development projects. Hence, achieving full compliance rate has become major concern of Indonesian Government particularly in supporting the development of rural area such as in Garut Regency Indonesia. However, in contrast to urban citizen, the attitude of most taxpayers in rural area is presumed to show lower compliance due to several factors such as level of knowledge. In response to that phenomenon, this research aims to obtain knowledge regarding the effect of taxpayers' attitude toward the effectiveness of land and building tax implementation in Garut Regency. Quantitative data was acquired by using survey that involves 96 respondents that were selected by using simple random sampling. This study also employs qualitative data by means of interview and soliciting relevant documents. The findings show that there is significant impact of taxpayer's attitude toward the effectiveness of land and building tax implementation. Surprisingly, the attitude of taxpayers in Garut Regency found to be favorable. The same result is also found for the effectiveness of land and building tax implementation. The opportunity for future studies is also being discussed in response to the findings.