JUSTICE VALUE APPROACH IN THE REFORM OF DETERMINING THE SALE VALUE OF TAX OBJECTS TO STRENGTHEN REGIONAL FISCAL CAPACITY

Abstract

This study aims to analyze the application of fairness values in reforming the determination of Taxable Object
Sales Values (NJOP) as a strategic effort to strengthen regional fiscal capacity. The determination of NJOP has
been guided by Law Number 1 of 2022 concerning Financial Relations between the Central Government and
Regional Governments. However, its implementation in many regions does not reflect fair market value and is not
in line with the principle of fairness as mandated by Article 23A of th e 1945 Constitution and the principle of
justice in tax collection.
This research uses a normative juridical method with a statutory, conceptual, and comparative approach to the
regulations for assessing the Taxable Object Sales Value (NJOP) in several regions that have updated their land
and building value databases. The research data was obtained through literature studies, regulatory reviews, and
analysis of taxable object assessment practices based on the derivative provisions of Law Number 1 of 2022
concerning Financial Relations between the Central Government and Regi onal Governments, including the
Minister of Finance Regulation concerning assessment guidelines.
The research results show that the integration of the principles of fairness, transparency of assessment, and
regular data updates in the Taxable Object Sales Value (NJOP) regulation has been proven to increase the
contribution of Land and Building Tax to Regional Original Revenue (PAD) and strengthen regional fiscal
capacity. Furthermore, the implementation of objective market-based assessments as mandated by Law Number
1 of 2022 concerning Financial Relations between the Central Government and Regional Governments can
reduce tax disparities between taxpayers and increase the legitimacy of regional tax collection. This research
recommends the reconstruction of the Taxable Object Sales Value (NJOP) regulation through harmonization of
regional regulations with Law Number 1 of 2022 concerning Financial Relations between the Central Government
and Regional Governments, strengthening regional government assessment standards, and digitizing the land
value information system to realize sustainable and equitable tax collection.