Title: The effect of land value factors in determining tax object sales value (NJOP) and analysis of assessment sales ratio: case study in Malang City, Indonesia

Authors: Rendra Kurnia Wardana; Dian Masyita; V. Santi Paramita

Addresses: Faculty of Economic and Business, Padjadjaran University, Indonesia ' Faculty of Economic and Business, Padjadjaran University, Indonesia ' Faculty of Economic, University of Jenderal Achmad Yani, Indonesia

Abstract: The purpose of this study is to determine the factors that affect the value of land for determining tax object sales value (NJOP). The determinants of land values are the factors of land area, building area, the distance from city centre, the distance from education centre, land use, accessibility, and flood free environment. The research uses the quantitative method. The result indicates the five factors have a positive and significant influence on the determination of NJOP. But the distance to the city centre and distance to the education centre have a negative and significant effect. Assessment sales ratio test results showed that the value of land and buildings is below from the market value. This indicates the need for reappraisal of NJOP's determination in Malang. The Government of Malang City is expected to be able to increase local revenue through the fair determination of NJOP.

Keywords: land values; tax object sales value; NJOP; assessment sales ratio; ASR; Indonesia.

DOI: 10.1504/IJSRECE.2019.097681

International Journal of Sustainable Real Estate and Construction Economics, 2019 Vol.1 No.3, pp.273 - 286

Received: 20 Dec 2017
Accepted: 28 Oct 2018
Published online: 04 Feb 2019 *

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