LAND AND PROPERTY TAX ISSUE IN INDONESIA TRANSFERRING THE PROPERTY TAX AUTHORITY FROM CENTRAL TO LOCAL GOVERNMENT

Since 2011, the Government of Indonesia has launched a new regulation on transfer of land and property acquisition owner (BPHTB) and property and tax on cities and rural areas (PBB - P2) from the central government to local authorities. This policy is a manifestation of the era of decentralization since 1999. After 10 years of discussion, the central government is ready to collect and manage property tax as income source for local governments.

Regional Fixed Assets The Tax Council approved local governments to manage property taxes under state supervision and establish fixed property tax rates locally. The law of 1980 passed the general voting, called "Proposal 21/2" and restricted the property tax and the automobile consumption tax rate. Calculation of limit value of property tax is divided into three parts. The new Growth State Taxation Bureau assigns the community more than 2.5% in consideration of improving the value of local real estate inventory, such as calculating the "new growth rate" of each local government and subdividing the farm into high-priced housing every year Allow to increase the amount.

Property tax is an advertisement value tax that is taxed on the value of an asset. The owner must remit this tax to regulatory authorities. In the US, local governments or county governments usually impose fixed property taxes. Federal, state, and local governments impose consumption tax on purchased consumer goods

Most municipalities and many special purpose organizations collect property taxes based on reasonable market prices. Schools and other authorities are usually managed separately and separate taxes are levied. Property taxes are usually taxed only on real estate, but some jurisdictions are subject to certain forms of commercial real estate. The rules and rates of property tax vary from state to state, but the annual central tax rate ranges from 0.2% to 9% of the asset value. Depending on most states and locations, sales tax is imposed on the retail price of many goods and certain services. The sales tax rate varies widely from 0% to 16% for each jurisdictional area and may vary within the jurisdictional area depending on the specific product or service subject to taxation. The sales tax will be collected by the seller at the time of sale or will be remitted by the buyer of the taxable item that has not paid the business tax.

Since property tax is an important source of revenue for local governments, the tax assessment itself is the act of calculating the value and deciding to use the assets for tax purposes. Invoices are usually completed by the Tax Evaluation Department and are usually localized at the county level. Money distributed from property tax is used to pay for public schools, local infrastructure, libraries, civil service salaries, parks and recreation, health, and similar government departments. Among the property tax invoices detail how much of your money is spent on specific government and public expenditure