An Analysis of the Assessment Sales Ratio in Relation to Land and Building Tax Object Values

Abstract

This study analyzes the Assessment Sales Ratio (ASR) level and the accuracy of Land and Building Tax Object Sales Value determination in Ratahan District. ASR measures NJOP conformity to property market values ​​against the           International Association of Assessing Officers (IAAO) ideal standard of     90%–110%. This qualitative descriptive research gathered primary data via interviews with BPKPD tax officials and the Ratahan District Head, alongside secondary NJOP and market price data from 16 locations. Data were evaluated using ASR, median, weighted mean, Coefficient of Dispersion (COD), and    Coefficient of Variation (COV). Results show that: (1) The ASR level is very low, with a median of 31.52% and weighted mean of 32.97%, far below IAAO and Directorate General of Taxes (80%) standards; (2) COD (63.47%) and COV (72.84%) far exceed IAAO limits (20%), indicating extreme disparity; (3) All samples (100%) experienced underassessment, ranging from 1.81% (Wawali) to 71.28% (South Tosuraya); and (4) Unregistered tax objects were identified. In conclusion, NJOP determination in Ratahan District is inaccurate and non-uniform. This condition threatens Local Original Revenue (PAD)     optimization and creates tax unfairness. Recommendations include periodic NJOP adjustments, routine ASR evaluations, updated tax database management, and improved market data coordination.