The Effect of Receiving Local Tax on Regional Original Income in Surabaya City

Street Lighting Tax (PPJ), Land and Building Tax (PBB), and Land and Building Title Transfer Duty (BPHTB) are types of local taxes whose income is more significant than other taxes. This research aims to determine the influence of receiving PPJ, PBB, and BPHTB on original regional income in Surabaya City. The population used in this research is the report on the realization of PPJ, PBB, BPHTB, and original regional income in Surabaya City from 2013-2020. The data used in this research are quarterly, so the sample used is as much as 32 quarters. The data analysis technique used a model test, multiple linear regression analysis, coefficient of determination, and t-test. Based on the research results, it can be obtained that PPJ has a significant impact on original regional income, and PBB has a significant impact on original regional income. In contrast, BPHTB has no significant impact on original regional income. Regional governments must periodically disseminate BPHTB payments to increase public awareness of paying taxes.


INTRODUCTION
Local revenue is the right of local governments that are recognized as an increase in net worth value (Law Number 33 of 2004 concerning Financial Balance between the Central Government and Regional Governments).The acquisition of local revenues is significant for local governments because it is helpful for financing regional work plans and activities and supports regional development.Regional revenue consists of all funds obtained from regional general cash accounts, additional funds that affect the participation of current capital, as well as regional rights in one fiscal year without the need to be repaid by the regions (PP RI No. 58 of 2005 concerning Regional Financial Management).Law Number 33 of 2004 Article 6 states that there are 3 sources of regional income: original local income, transfer income, and other legitimate income.
Local revenue is income obtained by the region, which is collected based on regional regulations under laws and regulations (Law Number 33 of 2004 Article 1 number 18).Local income is the embodiment of the principle of decentralization.The central government authorizes local governments to finance the implementation of regional autonomy according to their capacity.The ability of each region to increase the receipt of local revenue can increase the financial capabilities of the region.The role of local revenue as a source of income requires local governments to optimize and maximize it.
Local governments must be able to increase local revenues by maximizing their existing potential.The government needs to use the principle of value for money and maximize the management of its funds.The principle of value for money is a concept used to assess whether the state has benefited the maximum from the spending and the utilization of its resources.Local revenues can be optimized by improving local governments' internal control *Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJprocedures to meet the principles of stewardship and accountability.The management principle is accountability in effectively managing the funds obtained and guaranteeing that the funds are used as well as possible.The principle of accountability is a form of accountability to interested parties to explain the use of funds and what things have been achieved (Kamaluddin & Patta, 2017, pp. 256-257).
Efforts to optimize original local income are carried out by maximizing the sources of original local income so that its realization can be consistent.The independence of a region can be seen through the amount of realization of revenue and the percentage of original local income to the total regional revenue; the more significant the realization and percentage, the higher the independence of the area.
The following is the budget data and the realization of the original regional income of Surabaya City in 2013-2020: Table 1 shows that from 2013-2019 the percentage level of realization of the original income of the Surabaya City area exceeded the predetermined budget, except in 2020.In 2020, the original regional revenue budget still needed to be achieved due to the declining economic conditions in that year.The COVID-19 pandemic partly caused the economic contraction throughout 2020.
The determination of the original regional revenue budget from 2013-2019 has consistently increased, and its realization has always been achieved even though the percentage level of realization has gone up and down.The realization consistently exceeds the predetermined budget, proving that the City of Surabaya is independent.However, realizing the original income of the Surabaya City area may always exceed the budget.Pada in 2020, it can be seen that the original regional income has decreased in the budget, and its realization has yet to be achieved.Therefore, the Surabaya City government must still increase the original regional income.Article 6, paragraph (1) of Law 33/2004 provides a broad scope of sources for original local income: local taxes, regional levies, management of segregated regional wealth, and other legitimate local original income.
If you look at the original regional income component, the largest source of income comes from regional taxes, this can be seen from the following figure of the original income diagram of the Surabaya City area in 2020: Based on Figure 1, it can be seen that in 2020 the highest contribution came from regional taxes, which were able to reach a percentage of 76.39%, while the results of Local Tax

Retribution
Regional Asset Management *Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJregional wealth management that were separated contributed the least, namely 1.13%.So, local taxes substantially contribute to the original income of the Surabaya City area.
Taxes are the primary source of state revenue.Some activities within the state will be challenging to carry out unless there are taxes and the regions.Implementing regional autonomy gives each region the responsibility to manage its taxes.Law Number 28 of 2009 states that local taxes are mandatory contributions to areas owed by individuals or entities that are coercive under the Law by not getting compensation directly and are used for regional purposes for the greatest prosperity of the people.Local taxes, as one of the sources of local income, are a natural source of finance for local governments that are used to finance the implementation of local government and regional development.As one of the components of local original income receipts, the potential for collecting local taxes provides more opportunities for regions to be increased to the maximum compared to other components of local original income receipts.
The following is data on the target and realization of the Surabaya City Regional Tax for 2016-2020: Figure 2 shows that since 2016-2017, the percentage of Surabaya city regional tax realization against the target was achieved and continues to increase.However, in 2019, the realization percentage decreased even though it had reached the target that year.In 2020, the realization of local taxes could not achieve the specified target, even though the realization percentage decreased and was lower than the previous year.The beginning of decline occurred in 2018; the percentage of Surabaya city tax realization decreased by 4.51% from the previous year, from 110.10% to 105.59%.
Based on Law Number 28 of 2009, local taxes in Indonesia are divided into provincial, district, or city taxes.Provincial taxes are divided into 5 types: motor vehicle taxes, motor vehicle takeover administration, motor vehicle fuel taxes, surface water taxes, and cigarette taxes.District or city taxes are divided into 11 types of taxes consisting of hotel tax, restaurant tax, entertainment tax, billboard tax, street lighting tax, non-metallic mineral and rock tax, parking tax, groundwater tax, swallow's nest tax, rural and urban land and building tax and land and building rights acquisition duty.Road lighting tax (PPJ), land and building tax (PBB), and land and building rights acquisition duty (BPHTB) are types of regional taxes whose potential income is more significant than other taxes.
PPJ is a tax on the use of electric power.Electricity is one of the basic needs that are important for activities in everyday life in an all-electronic era.Activities carried out by the community and the Government require electricity; the use of electricity is also a factor in the development of infrastructure in an area.The development of each region is currently developing rapidly; the development process certainly requires electricity so that it adds to the pp object.The higher PPJ revenue will increase regional tax revenues and influence local revenues.Rachman et al. (2021) said that PPJ partially had a significant effect on the original income of the city area for the 2011-2018 period, meaning that an increase would follow any increase in PPJ in original local income.The role of PPJ also affects an area because PPJ revenue funds will be allocated to electricity or public street lighting providers.
Regional development and increasingly dense population growth, especially in Surabaya, have increased people's interest in owning a place to live, owning assets in the form of land or buildings, and establishing their businesses as a necessity of life.The increased public interest resulted in new buildings, which *Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJmeant that the object of the UN also increased.The more taxpayers who pay the UN will increase the UN revenue so that the original revenue of the region increases.Arifiana et al. (2020) say the UN significantly affects local revenues, but the data results are negative.The reasons that caused the processing of the data were negative.Namely, taxpayers not paying according to the specified time, weak law enforcement on compliance with paying taxes, poor quality of resources and limited operational personnel; the taxpayer database needs to be more accurate and better.
The increasing public interest in owning a place to live, owning assets in the form of land or buildings, and establishing their own business as a necessity of life is also related to buying and selling transactions or switching buildings or land, the number of transactions carried out will affect the receipt of BPHTB.The more transactions for buying and selling buildings or land, the more influential it will be on BPHTB receipts, so the original regional income receipts will also be higher.Yusran and Dian (2017) said that BPHTB has a positive and significant effect on the original local income because the increase in BPHTB acquisition will increase the original local income, and any increase in BPHTB can affect the increase in original local income.
Based on the background that has been described, the researcher raised the title "The Effect of PPJ, PBB, and BPHTB Revenues on Regional Original Income in the City of Surabaya."From the background of the problems that have been described, the author formulates several problems that will be studied in more depth in this study as follows: 1.Does PPJ revenue have a significant effect on the original regional income in the city of Surabaya in 2013-2020?2. Does PBB revenue have a significant effect on the original regional income in the city of Surabaya in 2013-2020?3. Does BPHTB revenue have a significant effect on the original regional income in the city of Surabaya in 2013-2020?

LITERATURE REVIEW
Road Lighting Tax (PPJ) is a tax on electricity use, both self-generated and obtained from other sources (Law No. 28 of 2009).The electricity generated is the entire power plant, while the electricity from other sources is the electricity provided by the electricity company.Article 56 Paragraph 3 Law No. 28 of 2009 states that part of the PPJ revenue is allocated to provide street lighting.The PPJ object is the use of electricity in areas where street lighting is available whose account is paid by the district or city government (Kamaroellah, 2021: 84).Meanwhile, the other source in question is electricity from PLN, not PLN, such as generators.
PPJ rates are set at a maximum of 10%.Using electricity from other sources is set at a maximum of 3%.Other sources in question are industry, oil mining, and natural gas.The tax rate for using self-generated electricity is set at 1.5%.Regional Regulations determine PPJ rates, and the amount of PPJ rates for each region differs depending on the respective regional governments.In Surabaya, the PPJ rate that applies is 8%.The payable PPJ is collected in the area where the electricity is used.
Land and Building Tax (PBB) is a tax on land or buildings owned, controlled, and utilized by individuals or entities (Siahaan, 2016, p. 553).PBBs managed by local governments are rural and urban PBBs.According to Priantara (2012: 597), the object of PBB is land or buildings.Earth is the surface of the earth which includes land and inland waters as well as the territorial sea of Indonesia, while buildings are: 1. Environmental roads in a building complex, such as hotels, factories and their emplacements, are an integral part of the building complex.2. Toll roads 3. Swimming pool 4. Fancy Fence 5. Sports venues 6. Shipyards, docks 7. Luxurious garden *Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJ8. Oil, water and gas storage or refineries and oil pipelines 9. Tower The amount of the NJOP is determined by the Regional Head every 3 years, except for specific tax objects, which can be determined every year following the region's development.The amount of the Sale Value of Non-Taxable Taxable Objects (NJOPTKP) is determined by Regional Regulation at a minimum of Rp 10,000,000.-.PBB rates are set based on Regional Regulations at a maximum of 0.3%. 2 tax classifications apply in Surabaya; if the NJOP of land and buildings is not more than IDR 1.000.000.000then, the applicable rate is 0.1% of the sales value, whereas if the NJOP of land and buildings is more than IDR 1.000.000.000, then the applicable tax rate is 0.2% of the sales value.
Land and Building Rights Acquisition Duty (BPHTB) is a tax on acquiring land or building rights.Land or building rights are land rights, including management rights, along with buildings on it, as referred to in the law on land and buildings (Law No. 28 of 2009).Halim et al. (2017: 528) states that the object of the BPHTB tax is the acquisition of land and building rights, namely ownership rights, usufructuary rights, building use rights, usufructuary rights, ownership rights to flat units, and management rights.
The basis for imposition used is the NJOP of PBB if the Acquisition Value of the Tax Object (NPOP) referred to in the case above is unknown or lower than the NJOP used in the imposition of PBB in the year the acquisition occurs.Regional Regulations determine the amount of Acquisition Value Non-Taxable Tax Object (NPOPTKP) for each taxpayer; the lowest is IDR 60,000,000.If the individual who obtains the right of inheritance or testamentary grant still has blood relations in a straight line one degree up or one degree down with the grantor of the will, including husband and wife, then the NPOPTKP is set at a minimum of IDR 300.000.000.The BPHTB rate is determined by a Regional Regulation, with a maximum of 5%.In Surabaya, the applicable BPHTB rate is 5%.The BPHTB owed is collected in the area where the land or building is located.
Road Lighting Tax (PPJ) is a tax on the use of electric power, both self-generated and obtained from other sources.PPJ is a type of regional tax source of local income.Currently, electricity is one of the primary needs inherent in the community in carrying out all its activities.Activities carried out by the community and the Government require electricity, so the objects of PPJ are increasing.The higher the PPJ revenue, the more local tax revenues will increase and influence local original income.Rachman et al. (2021) said the PPJ partially had a significant effect on the original income of the city area for the 2011-2018 period.The first hypothesis made by the researcher namely: H1: PPJ revenue significantly affected the original regional income in the city of Surabaya in 2013-2020.
Land and Building Tax (PBB) is a tax on land or buildings owned, controlled, and utilized by private persons or entities.PBB is a type of local tax that is the source of local income.Regional development and population growth increase the community's needs, some related to housing and business fields.The existence of new buildings to complement the community's needs will add to the objects of PBB.The more taxpayers who pay PBB, the more it increases the UN revenue so that the original income of the region also increases.Arifiana et al. (2020) say PBB significantly affects local revenues.The second hypothesis made by the researcher, namely: H2: PBB revenue significantly affected the original regional income in Surabaya in 2013-2020.
Land and Building Rights Acquisition Duty (BPHTB) is a tax on acquiring rights to land or buildings.BPHTB is a type of regional tax source of local income.Several factors cause the existence of BPHTB objects, including the development of the times that encourage the community's mindset in terms of future investment to increase public interest in ownership of assets in the form of land or buildings.Economic development is also a factor in the increasing buying and selling of land or buildings.The more transactions for buying and selling buildings or land, the more influential it will be on BPHTB receipts, so the *Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJoriginal regional income receipts will also be higher.Yusran and Dian (2017) said that BPHTB positively and significantly affected local income.The third hypothesis made by the researcher, namely: H3: BPHTB revenues significantly affected the original regional income in the city of Surabaya in 2013-2020.

RESEARCH METHOD
The research objects that the authors examined were PPJ, PBB, BPHTB and regional original income in 2013-2020.This research was conducted in the city of Surabaya because it is related to research variables as a source for research.

Data Collection Techniques
The type of research used in this study is associative research.The associative method in this study was used to explain the effect of PPJ, PBB and BPHTB revenues on local income in Surabaya.The types of data used in this study are quantitative and qualitative.
The data source in this study is secondary data that is time series from 2013 to 2020.The secondary data obtained by the author was obtained from the annual report of the Surabaya City Government.Research data collection is also carried out directly by the Regional Financial and Tax Management Agency (BPKPD) of Surabaya City.The realization of the original revenue receipts of the region in 2013-2020.The original regional income data researchers obtained was from the Surabaya City Government.

Independent Variables: Road Lighting Tax (PPJ) Law Number 28 of 2009
The realization of PPJ receipts in 2013-2020.PPJ data obtained by researchers was obtained from BPKPD Surabaya City.

Land and Building Tax (PBB) Law Number 28 of 2009
The realization of UN acceptance in 2013-2020.Un data obtained by researchers was obtained from BPKPD Surabaya City.

Land and Building Rights Acquisition Duty (BPHTB) Law Number 28 of 2009
The realization of BPHTB receipts in 2013-2020.BPHTB data obtained by researchers was obtained from BPKPD Surabaya City.

Sample Collection Techniques
The population used in this study is a report on the realization of PPJ, PBB, BPHTB, and regional original income receipts in Surabaya for the 2013-2020 period (8 years).The realization data is in the form of quarter data where in 1 year there are 4 quarters, so the result is 32 quarters (8 years x 4 quarters).The sampling used in the study was saturated.Saturated sampling was used because this study used the entire population.The sample used in the study was as many as 32 quarters of each variable.

Data Analysis Techniques
Multiple linear regression analysis is a regression that has one dependent variable and two or more independent variables.Based on Table 3, it can be seen that in 2013-2020 the number of samples from the variables X1 (PPJ), X2 (PBB), X3 (BPHTB), and Y (Regional Native Income) was 32, respectively.Table 3   The PPJ coefficient (X1) value in the regression model is 10.978, which is positively valued.This result means that if PPJ increases 1 time, the original regional income will increase by 10,978; however, if PPJ decreases 1 time, the original regional income will decrease by 10,978, assuming that other variables are constant.*Corresponding author's e-mail: vincentia.devina@ukdc.ac.id http://openjournal.unpam.ac.id/index.php/EAJ The value of the UN coefficient (X2) in the regression model is 0.147, which is positively valued.The result means that if the UN experiences a 1-time increase, the original regional income will increase by 0.147; however, if the UN decreases by 1 time, the original regional income will decrease by 0.147, assuming that the other variables are constant.
The value of the coefficient of BPHTB (X3) in the regression model is 0.040, which is positively valued.This result means that if BPHTB increases 1 time, then the original regional income will increase by 0.040; however, if BPHTB decreases 1 time, the original regional income will decrease by 0.040, assuming that the other variables are constant.
Based on Table 4, it can be seen that the value of R square is 0.899 or 89.9%.The results showed that independent variables had an ability of 89.9% to explain or influence dependent variables.In comparison, the remaining 10.1% was described or influenced by other variables not in this study.
Table 4 shows that significance F has a value of 0.000 which means that the value is less than 0.05.Based on the results of the feasibility test of the model, it can be concluded that the research is worth using.

Discussion
Variable X1 (PPJ) obtains a significance value of 0.000 or less than 0.05 with a positive calculated t value.Electricity has become one of the basic needs that is important for activities in everyday life in an all-electronic era.Various activities carried out by the community and the government require electricity; this is, of course, one of the factors that are the reason for PPJ's influence on original regional income because these activities will add to the tax object.The existence of PPJ influence on original regional income shows that the region has maximized the potential of its sources of income to increase the region's financial capacity and make the region more independent.
This influence is due to the improving economic conditions in Surabaya, the life of the people who need electricity every day, especially activities at night that require street lighting.The increasing use of electricity or lighting will increase PPJ revenues, affecting local revenue.Public awareness of paying taxes also helps increase PPJ revenue so that regional original income increases.
The variable X2 (PBB) obtained a significance value of 0.028 or less than 0.05 with a positive calculated t value.The influence of PBB on local own-source revenue can show that the regions have maximized existing revenue sources, especially regarding PBB collection.The government routinely socializes PBB payments through social media or mobile cars.This influence is also caused by the improving economic conditions in Surabaya, which is increasingly densely populated and has buildings.
The population density in an area increases the attractiveness of business actors to create attractive and salable businesses in society.Many new business places have been built in the city of Surabaya.There are new buildings in the form of shophouses, supermarkets, gas stations, and different types of places to eat.The more buildings there are, the more PBB objects will increase PBB revenues and affect regional own-source revenues.Public awareness of paying taxes promptly also helps increase PBB revenues so that original regional revenues increase.
Variable X3 (BPHTB) obtained a significance value of 0.685 or more than 0.05 with a positive calculated t value.BPHTB has no influence because BPHTB is not a tax paid regularly, but BPHTB is only paid once at the beginning of the transaction, namely when transferring rights or when granting new rights.BPHTB does not have a significant effect; it can also be caused by unstable BPHTB revenues every year; besides that, BPHTB is included in the taxes paid by the self-assessment system.
Another reason is that many people still need to get their land or buildings certified because they cannot afford to pay the BPHTB.Several efforts have been made by the government so that people who cannot afford it can still pay BPHTB, one of which is the provision of incentives in the form of reduction, mitigation, and exemption from BPHTB administrative sanctions.

CONCLUSIONS
Based on the results of testing research data using Statistical Product and Service Solutions (SPSS) 22.0 and the discussion described, the following conclusions can be concluded: PPJ significantly affected the original regional income in Surabaya in 2013-2020.This influence is caused by the fact that electricity has become one of the essential basic needs for activities in everyday life in an all-electronic era.Various activities carried out by the community and the government require electricity, so the object of PPJ will increase.PBB significantly affected local revenues in Surabaya from 2013-2020.The improving economic conditions in Surabaya cause this influence; it can be seen as getting denser and more densely populated buildings.The more buildings, the more it will add to the PBB object, which will increase PBB revenue and affect the region's original income.BPHTB did not have a significant effect on the original regional income in the city of Surabaya in 2013-2020.BPHTB has no influence can be caused because BPHTB is not a tax that is paid regularly, but BPHTB is only paid 1 time at the beginning of the transaction, namely at the time of transfer of rights or when granting new rights.
Based on the conclusions, some suggestions can be considered that for local governments, it is necessary to increase and re-optimize BPHTB revenues, routinely socialize BPHTB payments to increase public awareness, and improve the tax collection system.For the community, it is hoped that it can add insight and knowledge of local taxes so that the community has the awareness and responsibility to be obedient in paying taxes because the local government will allocate these funds for better regional development.Time is a limitation in this study; it should be possible to consider adding other independent variables that affect Regional Original Income and can add to the more extended period of research time from this study so that the results provided can be even better.

Figure 1 :
Figure 1: Regional Original Income of SurabayaCity in 2020

Table 1 :
Budget and Realization of Regional Original Income of Surabaya City in 2013-2020