Analysis of PBB-P2 Growth and Billboard Tax and Contribution to Regional Revenue at the Manado City Regional Revenue Agency

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FORMOSA NEWS - Manado - Manado Property Tax Outpaces Billboard Tax in Boosting Local Revenue, University Study Finds. Research published in 2026 by Myline Angeline Rau, Inggriani Elim, and Anneke Wangkar of Universitas Sam Ratulangi shows that Rural and Urban Land and Building Tax (PBB-P2) has become a more stable and significant contributor to Manado’s Regional Original Revenue (PAD) than Billboard Tax. The study, featured in the Formosa Journal of Applied Sciences, analyzes tax growth and contribution trends from 2020 to 2024 and highlights administrative and compliance challenges that affect local revenue performance.

Local Taxes at the Core of Regional Development

Taxes such as PBB-P2 and Billboard Tax are central components of PAD, which supports roads, public facilities, education, and social programs. Rising property values increase PBB-P2 potential, while active business promotion drives Billboard Tax revenue. However, each tax behaves differently. PBB-P2 tends to be structurally stable because it is linked to land and buildings.

How the Study Was Conducted

The researchers from Universitas Sam Ratulangi used a descriptive qualitative approach. They collected data through:

• Interviews with staff at Manado’s Regional Revenue Agency (BAPENDA).
• Direct observation of tax administration processes.
• Documentation of tax realization reports from 2020–2024.

The team compared annual revenue figures, growth rates, and each tax’s contribution to PAD. This approach allowed them to link statistical trends with real administrative conditions.

PBB-P2 Revenue Shows Strong Long-Term Growth

PBB-P2 revenue in Manado more than doubled over five years.

• 2020: Rp27.0 billion.
• 2024: Around Rp59.7 billion.

Growth was particularly strong in 2022, when revenue jumped by more than 60 percent compared with the previous year. Researchers link this increase to improved taxpayer payment capacity after the pandemic, digital distribution of tax notification letters, and periodic adjustment of property valuation (NJOP).

However, growth slowed sharply by 2024, reaching only about 1.6 percent. This pattern indicates that PBB-P2 is approaching a saturation point unless new taxable objects are identified and databases are updated.

Implications for Policy and Public Services

For Manado’s government, the findings point to clear priorities:

• Expand and update property tax databases.
• Strengthen digital tax payment and monitoring systems.
• Improve enforcement against illegal billboard installations.
• Increase taxpayer education and outreach.

Stronger PAD performance means greater financial independence from central government transfers. This enables better infrastructure investment, improved public facilities, and more responsive local services.

For businesses, clearer tax administration creates legal certainty and fairer competition. For residents, improved tax collection translates into better public goods and long-term urban development.

Author Profiles

Myline Angeline Rau, M.Ak. – Accounting and public finance researcher at Sam Ratulangi University 
Specializing in regional taxation.

Inggriani Elim, M.Ak. – Lecturer and researcher at Sam Ratulangi University  
With expertise in taxation and public sector finance.

Anneke Wangkar, M.Ak. – Academic at Sam Ratulangi University 
Focusing on regional financial management and fiscal policy.

Source

Rau, M.A., Elim, I., & Wangkar, A. “Analysis of PBB-P2 Growth and Billboard Tax and Contribution to Regional Revenue at the Manado City Regional Revenue Agency”. Formosa Journal of Applied Sciences (FJAS) Vol. 5, No. 1 2026: 129-146

DOI: https://doi.org/10.55927/fjas.v5i1.536 

URL: https://srhformosapublisher.org/index.php/fjas