The New Monarchy, 1492 - 1500 (Part 4)

The New Monarchy, 1492 - 1500

The Role of the Cortes & Other groups in raising finance:

• Servicio y Montazgo = ordinary tax owned on the movement of sheep by the Mesta = granted by Cortes
• Alcabala = sales tax = 90 % of income from taxation
• Tericias Reales (Royal third) = ecclesiastical tithes = granted by the Pope to the monarchs for their part in the war against Islam from 1494
• The Cruzada = tax from war with Granada
• Salinas = salt production
• Customs duties (a tax of 19 per cent) = maritime trade
• Extraordinary taxation = granted by Cortes e.g. servicios which raised money for war; payments made by Christians for indulgences; poll taxes from males over 16 who owned property
• Income = Cruzada, servicio y montazgo, illegal taxes from Santa Hermandad, Tercias Real, Alcabala, Royal estates
• Expenditure = personal, royal court, central administration, ambassadors, interest on juros, patronage, Dowries, War
• J.H. Elliott = "income entirely dependent of Cortes control"

Taxation & Crown Debt:

• crown found itself in debt
• Paid off with Juros, kind of a state loan, offered to known + reliable supporters of the crown + repaid 10% interest
• Alcabala was the crown's biggest source of revenue, first introduced in 1342 + initially collected by tax farmers, but later developed to the nobles
• Cities could pay a lump sum, called encabezamento
• These changes meant that the crown lost a regular flow on income, which in turn, meant it was less able to regulate its finances in a systematic matter
• 1482 = crown became involved in wars both in Spanish penisula e.g. Granada 1492 + outside of Spain
• Costs for war increased, ordinary income = insufficient
• F + I are described as…