This chapter focuses on the theory and practice of allocating revenues across levels of government, and the administration of local revenues, with particular attention on the property tax as the primary source of potential and sustainable LG revenues. The paper is divided into five sections. Following the introduction, section 2 outlines the theory and practice of revenue allocation across government levels and examines various ways of structuring revenues to support local autonomy and fiscal decentralization. Section 3 focuses on the Indonesian reform experience in structuring its local own revenue system. Section 4 examines the property tax devolution process in Indonesia under Law No. 28 (2009). Section 5 concludes with recommendations for the way forward.