The Effect of Hotel Tax Contribution and Hotel Tax Effectiveness on Regional Original Income in Medan City

Abstract

This study aims to determine the significant effect of Hotel Tax Contribution and Hotel Tax Effectiveness on Regional Original Income in Medan City. From analysis, results of regression analysis are obtained which give the equation  Regional Original Income = 23.160 - 0.730 Hotel Tax Contribution + 0.824 Hotel Tax Effectiveness + e. Results of the research analysis show that the Hotel Tax Contribution does not have a significant effect on Regional Original Income partially, namely tcount < ttable, namely -10,621 < 2.00172 and a significance value of 0.000 <0.05. Results of the research analysis show Hotel Tax Effectiveness has significant effect on Regional Original Income partially, namely tcount > ttable, namely 9.744 > 2.00172 and a significance value of 0.000 <0.05. Simultaneous Regional Original Income is Fcount > Ftable, namely 58.020 > 3.16 and the significance value is 0.000 <0.05. Results of this study are supported by the value of R Square = 0.671 or 67.1% which means that 67.1% of the Regional Original Income variable can be explained by the Hotel Tax Contribution and Hotel Tax Effectiveness variables, while the remaining 32.9% is explained by the influence of other factors or variables outside the model such as Tax Efficiency.