Property Tax is considered to be an ideal revenue source for local governments due to its nature and characteristics. The tax object can’t quickly move away and is easily visible. With enough discretion, local governments may attract investors for private and corporate objectives. Many developing countries have made significant efforts to design a tax system that is appropriate and suitable for their specific conditions and objectives. Some countries opted for a completely decentralized tax, others for a centralized tax with a revenue-sharing scheme. In between, there are several options to assign functions like: valuation, collection, or tax rate setting to different levels of government. Indonesia is currently reforming the tax fundamentally by devolving it from a central to a completely local tax by 2014.