The system led to great abuse. The influential got repaid, not so the poor. Hence speculators connected with Government bought up claims on the State for small sums, and then got the loan refunded.
The Assessment (estimo) of citizen’s property for II. and III. was originally managed thus—
1. A Balía appointed who assigned to each ward their quota.
2. In each ward. Seven Boards of seven each (Sette Settine) made seven schedules of assessment on the citizens according to their idea of the property of each individual.
3. These seven schedules were sent to some of the best reputed monasteries, which rejected the four schedules which differed most widely, and then, adding up the amounts assessed to each taxpayer by the three remaining schedules, divided the total by 3.
But under this system numerous exceptions had crept in; indeed, the rich were largely exempted on the plea that they served the State by taking office.
Hence the reform of the Catasto, 1427 (Accatastare, to heap up). A valuation made every five years of all property subject to taxation. (Lands, movables within or without city, rents, profits of business.)
From this sum capitalised at the rate of 7 per cent., i.e. 7 florins income = 100 florins capital, deductions for necessary expenses were made. The remainder, which was looked upon as a surplus, was liable to be taxed either for direct tax or for loans at the rate of ½ per cent. on the capital.
From the time of Cosimo the Assessment was made by officials instead of representative Committees, and the principle of graduation was introduced. This became perpetual in 1480, when the tax was thrown on land only at