Roman Taxation

  • During the Roman Republic taxes were collected by Corporations of Tax Farmers known as Publicani, either in cash or Goods in kind. Under the Empire an advanced system for collecting taxes was implemented based on a Census that assessed individual wealth and a flat rate for taxes on Goods, Individuals and Property.
  • As Benjamin Franklin (1789) once said: ‘In this world nothing can be said to be certain except death and taxes’. It was no different for the Romans.

Rome and the Italian Cities

  • In 167 BCE Rome and Italia were made Tax exempt, because there was sufficient Tributum coming in from the newly conquered Provinces.
  • In 290-291 CE, Diocletian brought back Taxation to Italia, but Rome remained exempt.

The Cities in the Provinces

Tax Collection under the Roman Republic

  • This was done by Roman Tax Farmers operating through Roman Tax Collection Companies.
  • Under the Roman Republic the Censors leased Tax Collection to the Publicani. These were individuals or groups of individuals formed into Joint Stock Corporations, who Bid for the right to collect Taxes at Auction, paying the Aerarium (Treasury) in advance, and then collected the Taxes themselves in the hope of making a surplus.
  • Taxes varied between 1%-3%. There was no census and individual land and wealth wasn’t assessed accurately. In the Provinces it was sometimes easier to assess a whole community who then had to pay a tithe of their income. The system was overdue for reform.

Tax Collection under the Roman Empire and the Roman Census

  1. Reform:
    • Augustus abandoned the use of the Publicani, and instituted a comparatively advanced Tax System using Flat Rate levies.
  2. Roman Census:
    • Augustus ordered a census to be held every 14 years throughout the Roman Empire. Each individual City was then instructed to pay a certain amount of Taxes.
    • The Individual paid the City. Provincial Magistrates were responsible for the Tax Collection in that City and its surroundings. Taxes were paid either in Cash, or in Goods or by Services.
  3. Roman Cities:
    • The cities then paid Rome via the Fiscal Procurator, the amount varying according to their status.
    • Eligibility for Taxation seems to have started at 14 for men and 12 for women, and ended either at 60 or 65 years old.
  4. Types of Taxes:
    • Slave Tax:
    • Inheritance Tax:
      • Augustus also instituted an Inheritance Tax (Death Duties) of 5% which went to pay for the Legions Pensions.
  5. Egypt
    • Egypt had a different Tax System:
    • Taxes were levied in Cash and in kind on Land, in the form of Grain or other Foodstuffs.
      • Poll Tax, the ‘Laographia’ was raised on local Egyptian Males between 14 to 60 years old.
      • Poll Tax on the ‘Metropoleis’ cities was raised at a lower Rate.
      • Poll Tax on the Greek Cities in Egypt: they were exempted.
  6. The Roman Tribe:
    • Every Roman Citizen had to belong to a Tribe and the same applied to the Provinces. His Tribe would usually be reflected in his name.
    • For example, in Gallia Narbonensis Roman Citizens were enrolled in the ‘Tribus Voltinia’.
    • The Tribe was used as the basis for establishing Voting constituencies in Political Assemblies, recruitment into the Army, assessment in the Roman Census and for Taxation.

Types of Roman Taxes:

  • Taxes collected by Senatorial Provinces were sent to the Aerarium
  • Taxes collected by the Imperial Provinces and sent to the Fiscus:
    • Tributum:
    • The Peregrini had to pay Tributum in the form of two Taxes:
      • Tributum capitis:
        • An annual Poll tax paid by every male over 14 and every female over 12, but from which Roman Citizens and those over 60 or 65 were exempt.
      • Tributum soli or Agri:
        • A Land Tax. However, the Land inside Italia, and the land in the Roman Provinces belonging to the Roman Colonies, was exempt from Land Tax.
    • Vectigalia:
      • Portoria
        • (singular Portorium: this was an Imperial Customs Duty on Imports and Export of Goods in Ports or Public Highways entering or leaving the Province.
          (If a City was allowed to raise this tax it was shared with the Public Treasury).
      • ‘Ansarium or Foricarium’
        • Duty levied at entrance to Towns.
      • ‘Edulia’
        • Sales of Imports levied in the Markets on Wine and certain Food items.
    • Sales Tax:
    • Tax on Sale of Slaves:
  • Aerarium Militare:
    • Taxes were specifically collected for the Military Pensions, the Aerarium Militare:
      • Tax on Sales at Auction – Centesima rerum venalium.
      • Inheritance Tax – Vicesima Hereditatium: Fixed at 5% begun under Augustus, exceptions were made for gifts to children and spouses.
  • Fiscus:
    • Taxes collected by the Emperor’s Private Treasury, the Fiscus:
      • Rent and Dues from Imperial Estates.
      • Franchise payments from the Lease of Imperial Mines.

The Roman Treasury: Income and Expenditure

  1. Aerarium
    • This was the State Treasury administered by the Roman Senate.
    • It received the Revenues from the Senatorial Provinces.
  2. Aerarium Militare:
    • This was the Military Treasury, instituted by Augustus to collect the Receipts of the Inheritance Tax and Sales Tax, which went to pay for the Legionaries Pensions.
  3. Fiscus
    • This was the Emperor’s personal Treasury which included Revenues from the Imperial Provinces.
  4. Vespasian created the following taxes:
    • Fiscus Alexandrinus
    • Fiscus Asiaticus
      • which also removed the revenues of Asia from the Aerarium.
    • Fiscus Judaicus
      • which funded the Temple of Capitoline Jupiter.

The Fiscal Procurator or ‘Procurator Augusti’

  • Under the Empire, this Office was always held by an Equestrian. He collected Taxes of the Province and worked beside the Provincial Governor, but was not a subordinate to him. Instead he answered directly to Roman Emperor.
  • The Procurator was responsible for the Collection of all Taxes, and because he was appointed by the Roman Emperor, he also kept a check on the Governor.

Roman Wages

  • Diocletian's Price List (301 CE) gives a complete listing of Roman Prices and Wages.
  • Expenditure went on Legionary Pay and Equestrian Pay, whilst Patricians in Public Office were expected to pay for themselves.

Crisis of the Third Century (235-284 CE)

  • During this fifty year period of constant civil wars, the Roman Government had to resort to Requisition. Since the price of money could not be determined, the Government seized what it needed.
  • As a result of expanding the Army and Civil Service, Taxation had to increase. Between 30 BCE and 235 CE the Roman Government paid its invoices in gold and silver.

Diocletian’s Tax Reforms (290-301 CE)

  • Diocletian reformed Requisition into a new Tax system based on Heads (Capita), and Land (Iuga) the assessed value of which varied according to the crop and type of land. A city in the Empire would send an amount of grain, calculated by its ownership of lands – and an amount of money, men and animals, calculated on its Head count.
  • Taxes were due on 1 September, and collected from each landowner by Decurions. The Decurions were members of the city Council, who were required to make up the difference if they failed to collect all the Taxes.
  • In 290-291 CE, Italia, which had been Tax exempt since 167 BCE, was included for the first time in the Tax system. However, Rome and its surrounding area controlled by the Senators, remained exempt.
  • In 296 CE Diocletian issued an Edict to enforce the Roman Census every five years (instead of every 14 years), in order to stay current with inflation.

Diocletian’s Edict on Coinage Reform and Prices (301 CE)

  • Diocletian’s Edict (301 CE)
    • He issued an Edict reforming the Roman Coinage.
    • Inflation went out of control as a result of Diocletian’s Edict, and he was forced to issue another Edict a few months later freezing Prices and Wages:
  • Diocletian's Price List
    • Prices were frozen at the level in this List. However, it was unsuccessful and inflation continued.

Reforms of Constantine I (301-337 CE)

  • In the end, Constantine I was able to bring stability back to the Currency, and Inflation was brought down.

 

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