<![CDATA[Yogyakarta City exhibits high structural reliance on central government transfers, particularly the General Allocation Fund, while local revenue from non-tax levies remains underutilized due to persistent building permit non-compliance. This study analyzes realization patterns of the Building Approval Levy, quantifies compliance gaps, estimates unrealized revenue potential, and simulates its capacity to reduce transfer dependency. Unlike prior studies focusing solely on revenue contributions, this research integrates compliance gap valuation with fiscal dependency simulations. Employing a descriptive case study design using municipal secondary administrative records from 2022 to 2024, building additions are proxied by net annual property tax registrations. Results show a low average compliance rate of 38.4 percent, representing an accumulated gap of 503 unpermitted building objects and an unadjusted gross upper-bound loss of 1.97 billion Indonesian Rupiah. Realistic net recoverable revenues adjusted for collection costs and statutory low-income housing exemptions yield lower fiscal gains. Fully capturing this potential produces measurable but marginal self-reliance improvements, proving that levy intensification alone cannot eliminate transfer dependency. Constrained by a three-year observation window, future research should extend the timeframe and incorporate spatial or satellite-based construction proxies.]]>
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