Property Tax

Abstract — Land and Building Tax (Pajak Bumi dan Bangunan/PBB) is a critical source of local government revenue that plays a vital role in funding public services and regional development. This paper examines the fundamental mechanisms of PBB, including its assessment methods, collection efficiency, and its overall contribution to fiscal decentralization. Furthermore, it addresses common challenges such as outdated property valuations, low taxpayer compliance, and administrative bottlenecks. The findings suggest that accelerating digital transformation through electronic tax systems and updating land value zones are essential strategies to optimize revenue collection and enhance transparency. Ultimately, an effective PBB management system not only strengthens local financial independence but also supports equitable urban and rural development.