<![CDATA[Research Originality – This study contributes to the existing literature by analyzing how local tax authorities, sectoral economic structures, and levels of fiscal autonomy at the subregional level are interrelated, an issue that remains underexplored as prior research has predominantly focused on revenue realization, tax effort, and macro-fiscal stabilization. It also illustrates structural contradictions in areas with an economy based on the tertiary sector of economic production, such as Bali, where dependence on the service sector does not directly translate into fiscal autonomy. Research Objectives – The purpose of this study is to find out the effect of local tax authorities’ policy implementation on the tax revenue structure and its correlation with local tax revenue autonomy in eight regencies and one city in Bali Province. It also takes into account sectoral economic characteristics and their influence on local tax revenue capacity. Research Methods – The study uses a descriptive and correlational quantitative approach to examine the relationship between the economic structure of different sectors and local tax revenue. The analysis uses data from eight regencies and one city in Bali Province. Empirical Results – There is a robust correlation between the tertiary economic sector and local tax revenue, whereas the primary sector's contribution is negligible. The secondary sector's tax revenue is limited, which aligns with the Law on Financial Relations between the Central Government and Local Governments (UUHKPD). Fiscal disparities are extreme, with an index ranging from 15.48 to 85.60, and 55% of the regions are classified as fiscally dependent. Implications – The study highlights the need for regional fiscal policy reforms through the intensification and extension of the tax base, including the optimization of the primary sector and the improvement of the synchronization of central and regional fiscal regulations.]]>
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