PBB
Also called: pajak bumi dan bangunan
Annual tax on land and buildings paid by the owner to the local government.
What it means
PBB or land and building tax is an annual tax on the ownership of land and buildings. This tax is levied by the government and the amount is stated in the tax notification letter. Its value is influenced by area, location, and the sale value of the tax object. Every property owner is required to pay it every year.
Why it matters for families
PBB is a routine cost that must be included in the household budget after buying a house. PBB arrears can hinder the sale and purchase process or mortgage application. Families should check the PBB payment history before buying a used property. This small annual cost can accumulate if ignored for years.
Example
For example, a family buys a used house and checks the PBB for the last year. It turns out the seller has two years of arrears, so payment must be settled before the name transfer. The amount may not be large, but the arrears still block the administrative process.
Common misunderstanding
Some people think PBB is only paid once when buying a house. PBB is an annual obligation as long as the property is owned.