CHAPTER I

INTRODUCTION

1.1 The background

In order to improve the financial capability to carry out autonomous regions, the
government made various areas of taxation policy. In countries applying the principles of
law, everything related taxes should be set out in legislation. Thus, the tax collection to the
people must be accompanied by the legislation of the call with the tax law. In Indonesia,
UUD of 1945 Pasal 23A of the legal basis for taxation by the state. This article states that
taxes and other fees for the purposes of coercive state regulated by Law. The implementation
of regional autonomy will be implemented properly if supported sources of adequate
financing. One of them is to improve the ability of local finance for the organizers of the
household. Nevertheless, regional autonomy within the framework of the Republic of
Indonesia, not only measured by the amount of revenue that can be achieved, but more than
that, namely the extent to which local taxes and levies can play a role in regulating the
economy of the community to grow, which in turn can improve the welfare of the community
in the area.

1.2 Identification of Problems

We, the authors, have arrange several problems that will discuss in this paper, i.e :
a. What is the meaning of Local Taxes?
b. What are the objects of Local Taxes? And what are the types of Local taxes?
c. What is the relation between central taxes and local taxes?
d. What is levies?

1.3 Learning Goals

Students understand and discuss the meaning of local taxes, types and objects of local
taxes, the relation between central taxes and local taxes, and levies.

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 CHAPTER II

CONTENTS

2.1 Definition of Local Tax

Local tax is a must contribution from personal or corporation to their region that force
by the law, and the benefit is not directly obtained. The local tax function is for the sake of
the region and for the prosperity of the people within the region.

According to Tony Marsyahrul (2004: 5):

"Local tax is a tax managed by local governments (both local government and local
government TK.I Tk. II) and the results be used to finance regional development and routine
expenditures (budget)".

According Mardiasmo, (2002: 5): "Tax is a mandatory contribution made by an

individual or entity to areas without direct payment are balanced can be in force by the
legislation in force in use to finance the implementation of local government and regional
development"

2.2 The Kind and The Object of The Local Tax

Local taxes divided into two, which are :
1. Province Tax 2. Regency/city tax
a. The tax for vehicle machine a. Hotel tax
b. The duty to changes the name of b. Restaurant tax
vehicle machine c. Entertainment tax
c. Tax of gasoline for the vehicle machine d. Advertisement tax
d. Tax for the water e. Street lighting tax
e. Tax for cigarette f. Non metallic mineral and rock tax
g. Parking tax
h. Ground water tax
i. Swallow’s nest tax
j. Land and building tax in the village or
city
k. Duty on Land and Building Right
Acquisition (BPHTB)

2.3 Local Tax Tariff

Tariff for every tax types are :

1. The tax for vehicle

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 2. For the first time owned a vehicle with minimum tax rate is 10%, and the maximum
tax rates set by 2%

3. For the second time owned a vehicle the tax set progressively with minimum tax rates
2 % and maximum 10%

4. The duty to changes the name of vehicle machine

5. a. The first payment rates set by 20% (twenty percent)

6. b. the second and the next payment rates set by 1 %

7. Tax of gasoline for vehicle

8. The maximum tax of gasoline for vehicle rates set by 10 %

9. The maximum public transportation tax rates set by 50% less than private vehicle

10. Water on the surface

11. The maximum water on the surface tax rates set by 10%

12. Tax for cigaratte

13. The tax for cigarette rates set by 10%

14. Hotel tax rate set by 10% (Pasal 35 Undang-Undang Nomor 28 Tahun 2009)

15. Restaurant tax rate set by 10% (Pasal 40 Undang-Undang Nomor 28 Tahun 2009)

16. The maximum Entertainment Tax rates set by 35% (thirty five percent). Especially for
entertainment such as fashion shows, beauty contests, discos, karaoke bars, nightclubs, arcade
games, massage parlors, and a steam bath / spa, amusement tax rates set at 75% (seventy five
percent). Special entertainment folk art / traditional amusement tax rates apply to set a
maximum of 10% (Pasal 45 Undang-Undang Nomor 28 Tahun 2009).

17. The maximum advertisement tax rate set by 25% (Pasal 50 Undang-Undang Nomor
28 Tahun 2009)

18. The maximum street lighting tax rates set by 10% (Pasal 55 Undang-Undang Nomor
28 Tahun 2009).

19. The maximum Non metallic mineral and rock tax rates set by 25% (Pasal 60 Undang-
Undang Nomor 28 Tahun 2009)

20. The maximum parking tax rates set by 30% (Pasal 65 Undang-Undang Nomor 28
Tahun 2009).

21. The maximum ground water tax rates set by 20% (Pasal 70 Undang-Undang Nomor
28 Tahun 2009).

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 22. The maximum swallow’s nest tax rates set by 10% (Pasal 75 Undang-Undang Nomor
28 Tahun 2009)

23. The maximum Land and building tax in the village or city rates set by 0,3% (Pasal 80
Undang-Undang Nomor 28 Tahun 2009)

24. The maximum Duty on Land and Building Right Acquisition (BPHTB) tax rates set
by 5% (Pasal 88 Undang-Undang Nomor 28 Tahun 2009)

2.4 Legal Basis and Procedure of the Regional Tax Collection

Basic LawAct 1945, article 23, Paragraph (2) : “Segala Pajak Untuk keperluan Negara
berdasarkan Undang-undang”.
The legal basis for local taxation and levies are : “Undang-undang No.18 tahun 1997
tentang Pajak Daerah dan Retribusi Daerah sebagaimana telah diubah terakhir dengan
Undang-Undang No.34 Tahun 2000.”

2.5 Relation between Central Taxes and Local Taxes

Central taxes and local taxes began to emerge in Indonesia since the implementation of
the regional autonomy system. Regional autonomy can be interpreted as an obligation or duty
given to autonomous regions to set up and manage their own affairs and public interests at the
public's aspirations to improve the effectiveness and efficiency of governance in the context
of public service and implementation of development in accordance with the legislation. in
the context of autonomy in Indonesia, the autonomous regions are provinces in Indonesia.

The spirit of fiscal decentralization began to be disseminated and become the

Indonesian government's ambitious program since the beginning of 2000, to be exact start of
fiscal year 2001. In that year, the local government from provincial, district, and the city was
given wider authority to manage and be responsible for the spending in several new sectors.
The logical consequence of the expansion of the authority is the increased expenditure area.
The improvement can be seen clearly when in 2001, the number of local spending (belanja
daerah) accounted for approximately 30% of total national spending.
Fiscal decentralization is at the center of the relationship between central taxes with local
taxes in Indonesia. The expansion of the financial authority of the central government in
terms of financial management needs to be supplemented with the expansion of the local
authorities to obtain their own local income, namely the expansion of local government
authorities to increase tax objects on their own areas. From here created their central taxes
levied for APBN and Local Tax levied for APBD. Both are charges as revenue on a budget,
it’s just that central taxes take wider portions in scale of national budgets and local taxes are
just focused on local income alone.

2.6 Levies
A. Definition of Levies
Levies or levy is a levy regions (autonomous) as a payment for services or certain
special permits provided and / or granted by the regional government for the benefit of
private persons or entities.

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B. Objects levies
1. Public Services (Jasa Umum)
2. Services Administration (Jasa Usaha)
3. Specific Licensing (Perizinan Tertentu)

C. Types of Levies
a. Levies of Public Services
Object of public service levies are services that provided for the regional government
interests and public benefit purpose and can be enjoyed by an individual or agency.
Public service levies types are:
1. Health Service Retribution;
2. Service Fees Waste / Hygiene;
3. Print Cost Recovery Levy Identity Cards and Civil Registration Act;
4. Levy Funeral Service and ashing corpse;
5. Service Fees for Parking Bank Public Road;
6. Market Service Fees;
7. Levy of Testing Motor Vehicles;
8. Levy of Examination Fire extinguisher;
9.Levy of Reimbursement Print map;
10. Provision levies and / or suction latrine;
11. Levy of Liquid Waste Processing;
12. Service Fees Tera / re-calibration;
13. Education Service Fees; and
14. Levy Control Telecommunication Tower.

b. Levies of Business services

Objects Business service levies are services provided by local government by
embracing commercial principles which include:
1. services with use / exploit regional assets that have not been used optimally; and / or
2. services by local governments to the extent not provided adequately by the private sector.
Type of Business service levies are:
1. Local Resources Levy;
2. Levy Wholesale Markets and / or Shops;
3. Levy auction place;
4. Levy Terminal;
5. Special place parking levies;
6. Levy Accommodation / Guest Houses / Villa;
7. Levy Slaughterhouse;
8. Ports Service Fees;
9. Levy Recreation and Sports;
10. Levy Water Crossings; and
11. Levy Enterprises Production Sales Regions.

c. Levies of Specific Licensing

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 Objects of specific licensing levies specified by the local government to an individual
or agency that is intended for setting and monitoring the activity space utilization, use of
natural resources, goods, infrastructure, facilities, or certain facilities in order to protect the
public interest and preserving the environment.
Levies on Licenses Certain types are:
a) Building Permits
b) Permits Point of Alcoholic Beverages Sale;
c) Disturbance Permit;
d) Route Permit; and
e) Fisheries Business Permits.

D. Procedures for Levies collection

Levies collected by using Surat Ketetapan Retribusi Daerah (SKRD) or other

equivalent document in the form of tickets, coupons, and a subscription card. In the case of
certain levies payer does not pay on time or less pay, levies payer charged to administrative
sanctions in the form of an interest 2% (two percent) per month from the levies payablewhich
were not paid or underpaid and charged with using STRD. Collecting levies payable, as
preceded by the Warning Letter. Procedures for levies collecting set by Peraturan Kepala
Daerah.

E. Levy utilization

Utilization of acceptance of each type of preferred levies to fund activities that are
directly related to theimplementation of services. The provisions concerning the allocation of
Retribution acceptance utilization assigned by the Peraturan Daerah.

F. Expiration of Collecting Levy

Rights to collect levies expire after the exceed of three (3) years from the time the
levies was owed, unless levies payer commit criminal acts in Retribution.

2.7 The Difference Between Tax And Retribution

1. Based on the benefit, tax is indirectly, while the retribution is directly and real to the
individuals or corporation
2. Tax applicable to the public , while retribution only for certain people who use
government services.
3. Tax can be imposed by the law, so does the retribution, but retribution is imposed for
the only people who get benefit from the government services
4. Institution that collect the tax are central and local government but institution that
collect retribution is just local government
5. The function of tax is for public sake while retribution is for individual sake who get
benefit from government service

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 CHAPTER III
CLOSING AND CONCLUSION

The conclusion that we can pull out of the discussion over is that the local taxes and levies are
ways of increasing the budget but taxes and levies, it must be implemented correctly and fairly by
the government or taxpayers, sanctions against those who are in arrears submit their blame rules
are the right thing, as contained in Act No. 34 of 2000 on local taxes and levies. as also explained
above that there are categories or taxes criteria. What is the tax rate that the set should correspond
not to be a burden for taxpayers, in describe the types of taxes what is taken as hotel tax,
entertainment tax, restaurant tax, advertisement tax, street lighting tax, tax collection excavated
material group C and parking tax. It is hoped that with the payment of taxes and levies that burden
the taxpayer may act regulating the economy in order to grow which in turn can improve the welfare
of people in the area.

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 REFERENCE

Mardiasmo, 2011, Perpajakan Edisi Revisi 2011, Yogyakarta : Andi Publisher

Anonim, 2015. Definisi Pengertian Retribusi Daerah, [online], http://www.definisi-

pengertian.com/2015/05/definisi-pengertian-retribusi-subjek.html (accessed May 8 2016)

Rohman, Asep, 2012. Makalah Pajak dan Retribusi daerah, [online],

http://tulisantangankudi.blogspot.co.id/2012/07/makalah-pajak-dan-retribusi-daerah.html
(accessed May 8 2016)

Dewangga, Jhohan, 2012. Pengertian dan Macam-macam Pajak Daerah, [online],

https://jhohandewangga.wordpress.com/2012/02/27/pengertian-dan-macam-macam-pajak-
daerah/ (accessed May 8 2016)