The three succeeding taxes were, in accordance with the resolution of 1690, percentage taxes and in connection with them we find much interesting legislation. A committee appointed in 1695 to draw up a plan of assessment reported as follows, "We therefore propose this way be for the rateing all lands and meadows and merchants, tradesmen and housings in this Collony; that every town shall yearly choose two or three able and honest men, to take the view of each of their inhabitants of their lands and meadows; and so to judge of the yearly profit at their wisdom and discretion; and so also of merchants and tradesmen; and to make this part of the rate according to the yearly profit; or as they, when they shall have had a more narrow inspection into the lands and meadows, shall see cause to set by the acre." The report was ordered to stand as an act by the assembly.[[82]] Persons who did not bring in an account of their estate were to be rated at the discretion of the assessors. In this assessment according to profit, particularly of tradesmen and merchants, we clearly see the influence of the commerce of the colony, which was just at this time beginning to develop.[[83]] Here too we see the first idea of assessors annually elected.[[84]] The penny in the pound rate of this year was levied in accordance with the same act, as was also the two pence rate of 1696. In 1698 percentage taxation was abandoned, not to be again revived, and a return was made to the former custom of assessing a specified sum and apportioning it among the towns. An attempt however was made in the adoption of the most detailed law with which we have yet met, to avoid injustice in the assessment. In each town the assistants or two justices were to appoint two men to take account of rateable estate and of males between sixteen and sixty years of age, a return to be made to the assistants or justices, who were to call a town meeting to choose "three well qualified men" to assess each person's estate, in accordance with the account returned and the act of 1695, so as to raise the required sum. All male persons between sixteen and sixty years of age were required to pay a poll tax of one shilling,[[85]] Indians, negroes and impotent persons excepted, unless they were freemen or had set up a trade or calling in the colony.[[86]] Any person who should conceal any part of his estate from those appointed to take account was to forfeit one fourth of the amount concealed. Finally an account of the rateable estates was to be brought into the assembly, in order that if any town had been overproportioned the error might be rectified.[[87]] Though this act was not a general law it seems in its administrative features at least with some slight modifications[[88]] to have been the basis of the tax system until January 1703-4 when was passed the act which as we have said, is the foundation of the present law, so far as its administrative features are concerned. Its provisions were as follows: Each town on its annual election day was to make choice of "three able, knowing men x x x for Assessors, or Rate-makers, to stand for the year ensuing, who shall be engaged as all other town officers; they, or the major part of them, in each town so chosen, to make and proportion all town rates, and likewise each town's part of all Collony rates". Collection was to be made by the town constables who in case of neglect were to be responsible for the sums entrusted to them for collection.[[89]] The act was amended from time to time as occasion required. In May 1704 the provision was introduced requiring the rate makers before assessing a tax to give ten days notice to each person to bring in an account of his rateable estate, anyone failing to do so to have no redress for overrating.
The rate makers were also empowered to administer an oath to all offering an account of their estates.[[90]]
The system of percentage taxation having been abandoned by the assembly that body endeavored to obtain a satisfactory basis for the apportionment of taxes among the towns by ordering from time to time that each town should send into the assembly an exact estimate of its rateable estate. I have been able to find no trace of these early valuations.[[91]]
Looking at the period after 1695, there is a plainly marked progress both in legislation and administration. Before 1695, no well defined system of taxation had been established by general law, but it was customary for each act assessing a tax, or the amendments to it, to contain the rules for assessment and collection. A practically uniform system doubtless prevailed by custom, but it was not embodied in the law. After 1695, we meet with general laws upon the subject of taxation which gradually result in a recognized legal system. When a tax is ordered reference for the method of assessment and collection is generally made either to some former tax or to a general law, the latter being always the case after 1703-4.
The same progress is evident in the administration of the law. During the first few years great difficulties were often experienced, as in the earlier period, and it was frequently found necessary to override town machinery and place the appointment of the assessors and collectors of the tax in the hands of the officers of the central government.[[92]] As that government became more firmly established, however, the towns yielded more willing obedience and during the later years of which we are speaking the heavy taxes were collected with great promptness by means of the ordinary administrative machinery. The cost of assessment and collection at the time was great amounting to seven or eight per cent. of the tax collected. In addition to this there was frequently a loss resulting from the payment of taxes in kind, either because the articles had to be disposed of at price lower than that at which they had been received or because of injury suffered while in the treasury.[[93]]
Miscellaneous Revenues.
There still remain to be noticed one or two matters which have not fallen within the foregoing survey.
The first has to do with legislation in regard to traders who cane into Rhode Island from other colonies, sold their goods and then returned remaining often but a short time. It was claimed that these traders carried off much ready money and produce to the detriment of the colony, at the same time escaping the burdens which fell upon the home trader. A law of 1698 levied a tax of five shillings on every ten pounds value of goods sold at retail by any trader who was not admitted an inhabitant of the colony. The tax on goods at wholesale was twenty shillings on one hundred pounds. This provision seems to have been aimed at foreign goods, as grain, provisions, and the produce of neighboring plantations were excepted from its operation.[[94]] In 1700 the tax on retailers was raised to five per cent.[[95]] and in the following year all merchants remaining in the colony for a month were made liable to all rates and duties levied upon inhabitants.[[96]]
The second has to do with other sources of revenue, in addition to those already mentioned, enjoyed by the colony, more important for the principle which they exemplify than for the revenue which they yielded. In 1707 an act was passed provided for the survey of vacant lands in the Narragansett country. These lands were sold to settlers and the proceeds devoted to the Canada expedition.[[97]]
From the nature of the colony ferries had always been a matter of great importance. The assembly had occasionally interfered to regulate their management in the interest of the public, and in 1699 adopted the policy of leasing the ferries for a term of years on condition of an annual payment to be made into the general treasury. The receipts were small but the principle involved was an important one.[[98]]