Abstract :
The purpose of local development is to reach society welfare. The local
government is necessary to increase the local revenue sources to meeting
government finance in implementing regional development that be able to done by
means improving Local Revenue (LR). Motor Vehicle Tax (MVT) and Motor
Vehicle Rename Custom (MVRC) as part of local revenue as important
component in Local revenue. Theoretically, the magnitude local revenue can be
affected by population number and GDP per capita. The purpose of this research
to identify the effect of population number and GDP per capita toward MVT and
MVRC as well as local financial independence of the province of East Java within
period 2013-2014. Data analysis gained from institutions of government of East
Java and the technique that used is path analysis with linear regression model
implementation. Population number and GDP per capita have negative effect on
local revenue independency and the income of local financial and MVT and
MVRC income as mediation variable.
Keywords: population number, GDP per capita, MVT and MVRC income, local
revenue independency.