The earliest stage-coaches, patronised mostly by the poorer class of travellers, were not taxed at all; but when the "flying coaches" and the "handsome machines with steel springs for the ease of passengers and the conveniency of the country" were put on the road and attracted passengers of a better class, the owners of private conveyances began to complain of the unfairness of their being taxed while the owners of public coaches were not. Wanting more money to meet the heavy expenditure on the American war, North met the complaints of the private-carriage owners by putting a tax on the stage-coaches; and the precedent thus established, in or about the year 1780, was followed by later Chancellors of the Exchequer, the taxation being subsequently extended alike to every class of vehicles used for coach traffic and, in 1832, to all classes of railway passengers.
In 1837 a Select Committee appointed to inquire into the taxation of internal communication reported that the taxes then in force in respect to land travelling by animal power were as follows:—
1. Assessed taxes on carriages and horses kept for private use.
2. A post-horse duty.
3. A duty on carriages kept to let for hire, being £5 5s. on each carriage with four wheels, and £3 5s. for each carriage with two wheels.
4. A license duty paid by each postmaster, being 7s. 6d. per annum.
5. Mileage duty on stage-coaches.
6. A license duty on stage-coaches, being £5 on each coach kept to run, and 1s. on each supplementary license.
7. An assessed tax on coachmen and guards.
8. An assessed tax on draught horses.