Abstrak
This research examines and answers two problems related to the management of regional taxes according to the Law on Financial Relations between the Central Government and Regional Governments and optimizing fiscal decentralization in the Law on Financial Relations between the Central Government and Regional Governments. This study uses a normative research type with a statutory approach and a conceptual approach. The legal materials used in this research are primary legal materials which consist of local laws and regulations as well as other legal instruments related to research. Secondary legal materials containing information references that support research such as books, journals, articles, and other data related to research. The results of this study, the researchers concluded that the Law on Financial Relations between the Central Government and the Government contains a number of changes related to tax management through option schemes, reclassification of types of taxes, restructuring of five types of consumption-based taxes and the addition of types of taxes. As an effort to accelerate the optimization of fiscal decentralization in order to achieve the indicators of decentralization, the presence of this law is to overcome declining vertical and horizontal inequalities, strengthen local taxing power, improve the quality of regional expenditures and harmonize central and regional expenditures. Keywords: Fiscal decentralization, Tax