An Analysis of Effectiveness and Contribution of Regional Taxes as Regional Own Source Revenue of Surakarta City

The central government gives authority to each regional government to regulate, manage, and optimize its regional resources to meet government funding in the context of implementing regional development through Regional Own Source Revenue (PAD). This study aims to determine the level of effectiveness and contribution of regional tax revenue to Regional Own Source Revenue (PAD). This research uses descriptive method with ratio analysis, which are the ratio of effectiveness to find out how effective the tax revenue from each regional tax post and the ratio of contribution to calculate the contribution of each regional tax post revenue. This study uses secondary data from Realization Report of the Regional Tax Revenue obtained from the Regional Financial Management and Asset Management Agency (BPPKAD) of Surakarta City in 2010-2018. The results showed that the level of effectiveness of regional tax revenue in the city of Surakarta in 2010-2018 is very effective. There is an ineffectiveness of regional tax revenue at the beginning of the determination of a tax become regional tax. Regional tax also contributes very well to the Regional Own Source Revenue of Surakarta City. This research is expected to increase knowledge for taxpayers, especially business people, will be more obedient in fulfilling their obligations to pay regional taxes and can be a suggestion for the government in determining policies to increase regional tax revenue.