The Influence of Perception of Local Tax Law Enforcement on the Compliance Level of Motor Vehicle Taxpayers

Abstract

This study investigates the wide gap between the high volume of motorized vehicles and the low level of taxpayer compliance in Medan City. This study aims to empirically analyze the influence of public perception regarding local tax law enforcement on this level of compliance. The researcher conducted an empirical quantitative study involving fifty respondents selected through incidental sampling techniques at the Integrated Administrative System under One Roof office. Data collection was conducted using a scaled questionnaire instrument, and the researcher analyzed the data using simple linear regression testing. The results of the statistical analysis indicate a positive and significant influence of perceptions of law enforcement on the level of taxpayer compliance. Partial testing yielded a significance probability of 0.000, confirming the rejection of the null hypothesis, with an indication of a contribution of 42.5 percent. The data prove that the threat of normative sanctions, textually, fails to guarantee compliance if not balanced with physical legal action in public spaces. The researcher found that routine joint traffic operations effectively reduce the number of violations, while the existence of repeated tax fine amnesty programs actually undermines legal certainty. This study concludes that regional authorities must transition to integrated digital oversight modernization and gradually phase out fine relaxation policies to restore a culture of sustainable tax compliance.