The Illomata International Journal of Management Ilomata International Journal of Tax & Accounting (IJTC) P-ISSN: 2714-9838; E-ISSN: 2714-9846 Volume , Issue Page No. 166-174 https://www.ilomata.org/index.php/ijtc 166 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Citra Novlyani Institute of Social and Management Studies STIAMI, Jakarta Correspondence: citranovlyani@gmail.com Submitted : April 5, 2021 Revised : April 20, 2021 Published : April 30, 2021 ABSTRACT The phenomenon in the research is that there are still many congestion points due to the lack of road construction, lack of infrastructure related to road maintenance, and inadequate transportation modes. This study aims to analyze the Implementation of the Earmarking Tax Policy on Vehicle Tax Collection in Bekasi City along with the constraints and efforts in implementation. The theory used in this study is the implementation theory of Ripley and Franklin with 3 indicators of implementation, the level of compliance, smooth routines and functions, and the realization of desired performance and impact. The research method used a qualitative approach with descriptive specificity. The result of the research is the implementation of the Earmarking Tax Policy on the Collection of Motor Vehicle Tax in Bekasi City for the compliance of the implementer in the matter of levying already under the regulation, but the allocation has not been maximal yet. Functional routine implementers are not yet maximal because there are still few technical issues and separation of funding post/account in the allocation, and no further regulations regarding the technical and standard operating procedure (SOP) for earmarking tax funds cannot be seen and controlled. The realization of the performance and the desired impact is also not optimal because there are still many congestion points and road structures that are still not good and adequate public transportation for the entire reach of the City of Bekasi. Keyword: Earmarking Tax Policy, Motor Vehicle Tax, Standard Operating Procedure INTRODUCTION The role of taxes is increasingly felt by the state when the state develops regions to achieve high growth. Regional development is a task that must be carried out by each Regional Government. Regional autonomy and decentralization are the authority of local governments to regulate and manage their households under constitutional regulations. The implementation of regional autonomy is an important main point to improve people's welfare. The development of a region can be adjusted by local governments with the potential and uniqueness of each region. In this case, the independence to manage the government, for the sake of the realization of people's welfare and optimizing regional revenue. Regional Revenue is an important financing component in the implementation of local government activities. Regional Revenue can describe the fiscal capacity of a region. One of the major sources of revenue for Regional Revenue is local taxes. One of the types of local taxes that is often become the spotlight is Motor Vehicle Taxes. Motor vehicle tax is a kind of provincial tax with the largest source of income and can help increase local revenue sources. With this, motor vehicle taxes provide a large contribution to local revenue each year. In supporting the increase in Motor Vehicle Taxes, there is a large potential for Motor Vehicles in Bekasi City as follows: https://www.ilomata.org/index.php/ijtc mailto:citranovlyani@gmail.com Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 167 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 Table 1. The Potential of Motor Vehicles in West Java Province, Especially Bekasi City 2016-2017 Year The number of Motor Vehicles Potential Amount % Province Bekasi City 2016 16,085,121 1,593,978 10 2017 14,864,898 1,459,933 10 Source: SAMSAT Bekasi City, the data is processed by the researcher Based on the data above, motorized vehicles in West Java province from 34 cities and districts, there is a potential amount of motorized vehicles from Bekasi City of 10%. The large potential for vehicles in the city of Bekasi can increase regional revenue, especially Motor Vehicle Tax, the amount of Motor Vehicle Tax revenue continues to increase in Bekasi City. In this case, motor vehicle tax revenue can be seen as follows: Table 2. Receipt of Regional Revenue in Bekasi City 2016-2017 (In billions) Year PAD PKB Effectiveness (%) Contribution % Target (Rp) Realization (Rp) Target (Rp) Realization (Rp) PAD PKB 2016 1,876,76 1,982,58 849,18 876,69 105,63 103,24 44,21 2017 1,917,42 2,056,83 881,33 935,11 107,27 106,10 45,46 Source: PPPD for Bekasi City, data was processed by researchers Based on the data above, it shows that every year the realization of Motor Vehicle Tax from 2016-2017 continues to increase and always exceeds the target. Motor vehicle tax revenue provides a very large contribution to regional revenue. As a source of revenue that contributes the largest portion of Regional Revenue, revenue originating from local taxes, especially motor vehicle taxes must be managed well. This management is of course considering the increasingly high demands of society for public services. As a manifestation of the government's responsibility to the society, it issued Law Number 28 of 2009 regarding regional taxes and regional retribution. The law states that certain tax revenues are allocated or earmarked to finance activities that are related to the tax. Table 3. Earmarked Tax that was mandated in Law Number 28 of 2009 Tax Type Earmarked tax in UU No 28 Year 2009 Article Allocation Amount Allocation Objectives Vehicle Tax 8 clause 5 Minimal 10% *Construction and Road Maintenance *Increase Mode and Means of Transportation Cigarette Tax 31 Minimal 50% *Funding for Public Health Services *Law Enforcement by Authorized Official Street Lighting Tax 56 clause3 Partially *Providing of Street Lighting Source: Law Number 28 of 2009, processed by researchers One of the allocated tax revenues is the motor vehicle tax which is allocated to finance the construction and/or maintenance of roads as well as an increase in modes and public transportation facilities, a cigarette tax which is allocated to finance public health services and law enforcement, and a street lighting tax that is allocated to finance street lighting. Motorized Vehicle Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 168 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 Tax is a type of regional tax at the provincial level. So there is a sharing of tax revenue between the provincial government and district/city governments to increase road construction and maintenance in financing service functions to the community, provincial tax distributes proceeds to districts/cities with different proportions for each type of provincial tax. The composition of the profit-sharing between the Province and the Regency / City according to the Regional Regulation of West Java Province Number 57 of 2017. Concerning Regional Taxes in Paragraph 1 of Article 5 states that results of acceptance of Motor Vehicle Taxes and BBNKB are distributed to the Regency / City Government by 30% (thirty percent), from the increase of Motor Vehicle Taxes revenue, road users can feel the benefit from paying the tax. By paying motor vehicle tax, the society hopes that there will be concrete forms of paying the tax, one of them is the road infrastructure. Based on data from the Bekasi City Police regarding Portraits of Conditions, security, safety, orderliness, smooth traffic, there are several points of traffic congestion such as on Jl. Sultan Agung, Jl. Ahmad Yani, Jl. Ir. H. Juanda, Jl. KH. Noer Ali and Jl. Joyo Martono was caused by many large vehicles were parked on the side of the road, the lack of bus stops, and public transportation that stopped for too long. This paper tries to see what the Earmarking Tax Application looks like or the allocation fee obtained from the Motor Vehicle Tax in Bekasi City, the obstacles faced in implementing Earmarking Tax, and the efforts to resolve these obstacles. METHODS The research approach that is used by researchers is a qualitative approach with a specificity of qualitative descriptive, it is an approach that seeks to collect, present, and analyze data so that it can provide a sufficient overview that is researched. Qualitative descriptive research has objectives to describe the existing phenomena qualitatively to obtain data sources through literature research and field research, such as direct observation to SAMSAT office of Bekasi City and BAPENDA, documentation related to research, and interviews with administrative officers of the Bekasi City SAMSAT office and BAPENDA officers of Bekasi City. The focus of the research is a detailed description of the researcher on the concept to be studied which contains the measurements or parameters that will become the basis of the interview guidelines, observations, and the documents used. In this case, the research focuses on 2016-2017 regarding the implementation of the Earmarking Tax policy on motor vehicle tax collection in Bekasi City, the obstacles faced by the Bekasi City Government in implementing policies, as well as the efforts made by the Bekasi City Government in overcoming those obstacles. Data collection techniques used in this study consisted of interviews, observation, and documentation. Meanwhile, the data analysis technique uses credibility, transferability, dependability, and confirmability. RESULTS AND DISCUSSION As a form of application of the principle of benefits in taxes, it is hoped that the concept of earmarking tax can provide benefits for taxpayers and society. This study applies the theory of Repley and Franklin (in Alfatih 2010: 51-52). The success of the implementation can be seen from 3 indicators, namely the level of compliance, the smoothness of routines and functions as well as the realization of the desired performance impact. The acceptance of motor vehicle tax revenue can be seen from the Regional Revenue Service (DISPENDA) of Bekasi City Province branch, as shown in the following table: Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 169 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 Table 4. Acceptance of Motor vehicle tax of Bekasi City 2016-2017 Year PKB PKB Effectiveness % Target (Rp) Realization (Rp) 2016 849,189,000,000 876,649,509,350 103,24 2017 881,334,000,000 935,111,404,325 106,10 Source: Regional Revenue Service Provincial branch of Bekasi City From table 4 shows that the targets that were set by the Bekasi City government in 2016 and 2017 always increased, the increase in the targets that were set by the local government is in line with the revenue received by the local government from the Motor Vehicle Tax sector, the realization of the acceptance of the revenue from the Motor Vehicle Tax sector always exceeds the target set by the Regional Government of Bekasi City. Thus in the implementation of the West Java Provincial Regulation Number 57 of 2017 can be said that it was running well, with the realization of tax revenue acceptance that exceeds the target set by the Regional Government of Bekasi City. With the achievement of the Motor Vehicle Tax target, it shows that the performance of the Provincial Branch Revenue Service in Bekasi City is quite good. The acquisition of Motor Vehicle Taxes, besides the amount, is big and continuously increased, the percentage of Regional Original Income is also quite big. This shows that Motor Vehicle Tax is a regional tax sector that greatly influences Regional Income because of the enormous potential for Motor Vehicles. The percentage of Motor Vehicle Tax to Regional Income is shown in the following table: Table 5. PKB Contribution to PAD of Bekasi City 2016-2017 (Billion rupiah) Year Target (Rp) Realization(Rp) Contribution % 2016 1,982,58 876,69 44,21 2017 2,056,83 935,11 45,46 Source: Regional Revenue Service Provincial branch of Bekasi City The data is processed by researcher From the table above, it can be seen that the Motor Vehicle Tax increases every year. With a very large contribution, which means that Motor Vehicle Tax revenue is almost half of the contribution to regional revenue. Based on Law No. 28 of 2009 and West Java Provincial Regulation No. 57 of 2017 which states that the yield of Motor Vehicle Tax revenue of at least 10% (ten percent), including those shared to districts/cities, are allocated for road construction and/or maintenance and improvement modes and means of public transportation. The department responsible for these related matters is the Department of Transportation which carries out technical matters such as checking, repairing, and developing transportation. Data from the Transportation Department shows the realization of the budget for road construction, road maintenance and transportation modes as follows: Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 170 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 Table 6. Realization of Transportation Agency's Budget of Bekasi City 2016-2017 Year Realization of PKB Revenue Sharing from Province Fund Realization Realization of Fund Allocation from PKB% Road Maintenance Road Construction Means of Transportation Total Cost 2016 29,62% 2,512,998,000 269,999,392,000 2,744,619,000 275,257,009,000 31,40 259,686,295,680 2017 29,62% 1,967,601,440 352,310,661,889 10,376,807,500 364,655,070,389 39 276,968,107,440 Source: Transportation Agency of Bekasi, Data was processed by researchers From table 3 it can be seen that the sharing funds of PKB revenue from the province has not been able to finance the allocation for road maintenance, road construction, and means of transportation. It can be seen that the percentage of revenue sharing from the province has not been suitable yet with the law, become the maximum action for the realization of the allocation of funds from PKB. So the first indicator has been fulfilled, namely the compliance of the implementer as the implementer of the policy and the compliance of the tax subject in terms of fulfilling tax payment obligations. The second indicator is the smooth implementation of routine functions and the minimum number of problems that arise. The word routine means a regular procedure. The procedure itself is certain stages in a program that must be carried out to achieve a goal, with the smooth of routine, and implementation of the activity program, it can make good implementation as well so that the successful policy implementation can be marked by the smooth routine of functions and there were no problems encountered. Before knowing the collection and budgeting processes in the field technically, we can see an overview of the motor vehicle tax revenue process to its allocation as follows: Picture 1 PKB Acceptance Process until its Allocation Source: Primary data, processed by researchers PKB Revenue Sharing to Province 70% APBD PAD of Bekasi City (BPKAD) Profit Sharing of 30% PKB to Bapenda Bekasi City PKB of Bekasi City, West Java Province (SAMSAT) Budgeting to Transportation Agency of Bekasi city for: 1) Road Construction 2) Road Maintenance 3) Means of Transportation Mode Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 171 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 From the picture above, it explains that the Motor Vehicle Tax that has been received by Bapenda of Bekasi City is in the form of profit-sharing from West Java province of 30% which is then managed by the Regional Financial and Asset Management Agency through the APBD process. . Through the APBD, it can be budgeted for DISHUB as the agency that responsible for road construction, road maintenance and means of transportation, so motor vehicle tax receipts will be returned to the public. So the second indicator has been fulfilled because it has been running based on the established procedure. As there was no problem occurred in the field, it can show the level of success of a policy implementation where all those concerned understand their duties and carry out them well. The Transportation Agency must improve more about the services and facilities that many Bekasi City residents complain about congestion, many roads with holes and lack of discipline for public transportation, for example by adding traffic officers, making a shelter or places for public transportation to stop, making call centers so that if there are reports about damaged roads, it can be immediately followed up, and it is hoped that all related parties, such as Bependa, BPKAD, and non-governmental parties, namely the Bekasi City Regional Government Budget Team, will coordinate more with each other and prioritize public facilities in Bekasi City. The third indicator is the realization of the performance and impact that is wanted which is the form of successful policy implementation. The success of the policy or work program is also reviewed from the perspective of the implementation process and the perspective of the results. If it is observed from the perspective of the existing process in the field, namely the less optimal service process carried out by the Transportation Agency, in the form of good public facilities services whereas the funding source exceeds the allocated budget, but has not been able to touch areas that are far from the center of Bekasi City. If it is viewed from the perspective of the results, we can see that the intended results are public facilities in the area of Bekasi City. The lack of public facilities in Bekasi City indicates that the services provided by the Transportation Agency are not optimal. The lack of optimal performance of the Transportation Agency is due to the limited work support facilities the budgeted funds are quite large, but the clarity of the source of the fund cannot be seen namely that the form of the allocation of funds for its allocation and the need for activities besides construction, road maintenance and several means of transportation modes, it becomes the funds that should have been able to be realized then it is delayed based on the interview with Mr. Tejo as the executor in the field of development "concerning the budgeting costs, for example, if we allocate 1 billion, and it is given only 600 million, we end up doing efficiency". The obstacles faced in the Implementation of the Earmarking Tax Policy on Motor Vehicle Tax Collection in Bekasi City are first, the Bekasi City Regional Government does not seem to have any preparations related to the implementation of the Earmarking Policy for Motor Vehicle Taxes. The source of funds that will be allocated for the construction, maintenance of roads and means of transportation modes have not specifically come from PKB. Both for the construction, maintenance of roads and means of transportation modes as the technical implementer is the Transportation Agency, all of these expenses are financed by the Bekasi City APBD. Second, there is still a lack of preparation of the parties related to the implementation of the earmarking policy. SKPD that related to the implementation of the earmarking policy on motor vehicle taxes includes the Bapenda, the Transportation Agency, and the Bekasi City BPKAD. Third, unclear implementing regulations for the implementation of earmarking policies on Motor Vehicle Taxes. Based on the obstacles that have been explained, the efforts made by the government so that the implementation of the earmarking policy runs well and under applicable regulations, the Implementation of Earmarking Tax Policy on Motor Vehicle Taxes in Bekasi City Novlyani 172 | Ilomata International Journal of Tax & Accounting Volume 2 Issue 2, April 2021 first thing that must be done by BPKAD as budget management is to make funding posts from the tax sector to be allocated as mandated by laws and regional regulations, for example, for road maintenance, a source of funding from the PKB revenue sharing, so that it is clear and measurable where the funding come from. The second SKPD related to the implementation of earmarking policies, such as the Bapenda, Dishub, and BPKAD in Bekasi City, are more updating information on applicable regulations for the realization of good government and the creation of good services for the community. Third, governments are trying to review the regulations regarding profit sharing so that the percentage given is not only 30% for districts/cities but increases to 40% so that the funds can be used optimally for allocations from PKB, then make specific regulations for the tax sector to be allocated and percentage the allocation can also be mentioned so that it can be seen clearly and measurably. If the regulations exist, the public will know that there is an allocation of taxes that have been paid for the sake of creating a clean government. CONCLUSION The implementation of the Earmarking tax Policy on Motor Vehicle Tax Collection in Bekasi City which is done by the West Java Provincial Government has been suitable with applicable regulations. Regarding the allocation of the results of the Motor Vehicle Tax in Bekasi City, it has not been maximized, which is only 29.62%, while what is mandated by the Regional Tax and Retribution Law is 30%. The smoothness of the routines and functions in terms of collecting Motor Vehicle Taxes is suitable with the applicable SOP. Meanwhile, the allocation of funds from the yield of Motor Vehicle Tax at the Bekasi City Transportation Agency for public facilities and transportation infrastructure has not been maximized, as proved by a large number of inadequate facilities. The obstacles faced by the Government of Bekasi City in implementing this policy are that the Bekasi City Government has not had a special funding post / account for the allocation of funds and SOP on earmarking tax. Besides, SKPD related to the implementation of earmarking tax are still not active with the prevailing regulations and policies. Likewise, no specific regulations are governing the allocation of funds. Efforts made by the Regional Government of Bekasi City in overcoming these obstacles, namely the local government creates a special post/account for allocation and making SOP on earmarking tax. 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