The Effect of Service Quality, Tax Awareness Campaigns, and Modernization of The Tax Administration System on Taxpayer Compliance in Paying Rural and Urban Land and Building Tax (PBB-P2)

Abstract

Land and Building Tax is a tax on land and/or buildings owned, controlled, and/or utilized by individuals or entities. The collection of Rural and Urban Land and Building Tax (PBB-P2) in Majalengka District fluctuates annually. In 2020, the collection rate was 77.72%; this figure decreased in the following year, 2021, to 74.17%, then rose to 81.91% in 2022, and stood at 78.39% in 2023. This study aims to determine the influence of service quality, tax socialization, and the modernization of the tax administration system on taxpayer compliance in paying the Rural and Urban Land and Building Tax (PBB-P2) in Majalengka District, Majalengka Regency.

The method used in this study is a survey method with a descriptive and verifiable approach. The population in this study consists of rural and urban land and building taxpayers in Majalengka District, totaling 50,980 taxpayers. The sample in this study comprises 397 taxpayers, selected using the Slovin formula and proportional random sampling. The data used were primary data obtained from questionnaires distributed to the entire sample, and instrument validation tests indicated that all statement items were valid and reliable. The analysis tool used was multiple linear regression. Hypothesis testing was conducted using partial tests.

The results of this study indicate that: (1) Service quality influences taxpayer compliance in paying rural and urban land and building taxes. (2) Tax outreach influences taxpayer compliance in paying rural and urban land and building taxes. (3) The modernization of the tax administration system influences taxpayer compliance in paying rural and urban land and building taxes. 

Keywords : Service Quality, Tax Awareness Campaigns, Modernization of the Tax Administration System, Taxpayer Compliance.