This paper aims to explore that factor influencing the effectiveness of Turnover tax collection in Hosanna Town. The study organized factors into four categories: Tax- administration related, Tax officers-related, Taxpayers-related and Tax systems related factors. The study used an explanatory approach, whereby data from 276 taxpayers’ for three sub-cities in Hosanna Town were collected using administers the questions. The questionnaire had 38 statements representing factors and12 statements representing the Turnover tax revenue collection effectiveness. The collected data were analyzed using both descriptive and inferential statistics. In the case of descriptive statistics, the study used frequency, percentage, mean and standard deviation. For the inferential statistics, the study used multiple regression analysis. The study findings showed that there were eight main critical factors turnover tax effectiveness. The results showed that turnover tax rate, mode of payment, Government policy formulation and services to taxpayers, Taxpayers knowledge of obligations and rights are factors that positively significantly effective on turnover tax revenue. However, punishment by tax office, detection capabilities of tax offices, education and advice from tax office were not significantly at 5% significance effective on turnover tax revenue. Despite the contributions of this study, there are some limitations which need to be acknowledged. First, data were collected from taxpayers only. Secondly, only 12 statements for factor were used. Thirdly, the study has used only primary data. Last, perceptual measures of turnover tax collection effectiveness. The authors consider that if other approaches were used, they could have reached different conclusions. From a practical perspective, revenue authority may be relying heaviling on taxpayers, as well as regulations, directives and proclamation, for turnover tax collection effectives. The study shows that mode of payment, taxpayer right and obligations on proclamation and tax policy on turnover tax are critical factors too. However, the study also has practical implications for local (Town) governments, revenue authority, turnover tax collection and taxpayers at large. This paper extends prior research in the area of turnover tax collection and is the first paper to use four categories of factors to analyze the influencing of turnover tax collection effectiveness, taking into consideration both tax authorities and taxpayers. It is used the model, which helped to generate variables with multiple prior theories (i.e. theoretical triangulation). Hence, new theories were combined with old theories to produce findings which take into consideration the context of the country.