However, Manuel, who was diligently handling tax matters in Theodosia, did not know what someone, somewhere in the city, thought of him.
After resolving the iron ore issue, he quickly returned to reforming Theodosia's tax laws.
And a few days later, in mid-July, during the scorching summer, after multiple consultations and discussions with officials and lords responsible for fiscal revenue, he finally finalized the content of the new tax law.
The premise of the new tax law was, of course, a unified system of weights and measures.
The Principality's weights and measures currently referenced common standards, but required strict adherence to conversion ratios, to be enforced throughout Theodosia, and to be precise with no room for error or deception.
If any wealthy individuals or lords did not follow this system of weights and measures and established their own, then, "the first offense will result in a verbal warning, the second will incur a fine of 3,000 ducats, and the third will lead to direct punishment for treason, confiscation of land and private property, and exile to the Kerch Isthmus." So stipulated Manuel's new regulations.
Based on the unified standard of weights and measures, the original tax collection system was improved as follows: the basic tax system was changed from collecting a fixed quantity and amount of tax to collecting taxes based on the value of property.
For example, someone with an annual income of 100 ducats must pay at least 1 ducat per year, and those holding land of equivalent value pay taxes similarly; however, those with an annual income of less than 25 ducats are exempt from this tax.
Manuel named this tax system the "Basic Tax," primarily referencing the Catasto (literally, cadastre) tax system of Florence, Italy, during the same period, aiming to collect taxes while balancing the financial strength of the upper and lower classes based on wealth and income.
However, unlike its reference, this tax system applied to all property owners in Theodosia, whether they were noble lords, pagans, or the Church.
Regarding customs duties in the commercial tax system, Theodosia adopted the same customs rates as Mangup, thereby eliminating tariff barriers between them, allowing the two cities to achieve organic integration, at least in commodity trade, making it relatively unhindered.
The commercial tax within the city adopted a one-twentieth tax system based on the price of goods sold, while simultaneously abolishing ridiculous levies and miscellaneous taxes, such as the absurd "chick tax" for killing a chicken, or alcohol tax, grape tax, and fermentation tax for drinking.
"These are all Latin bad habits," Manuel commented.
Furthermore, in terms of trade, since Theodore had previously provided the blueprints for the "Mangup Arquebus," an early gun model, and Venice had voluntarily canceled its previously agreed-upon trade privileges, there was "no need to grant any foreign commercial entity any special privileges," Manuel decided.
He declared in the new tax law that in Theodosia, no foreign power could enjoy "commercial privileges they should not have, which the Holy Father has not granted."
All merchants, domestic or foreign, would pay the same tax rate.
Of course, in Theodosia, you could choose not to pay these commercial taxes that you deemed "unfair," but then the Principality would not issue you any credentials, and all your commercial activities in Theodosia would be unprotected; if your goods were stolen, no one would help you recover them.
Additionally, the new tax law reiterated the protection of land ownership, especially for free farmers.
"No landlord shall, by any illegal or immoral means, seize or defraud any land from small farmers or city defense soldiers," Manuel declared this principle in the new tax law.
He also promulgated a "Joint Guarantee Tax System" ①, unearthed from some ancient text, requiring that "landlords are obligated to protect the tenant farmers and serfs under their rule."
To "protect" these tenant farmers and serfs who had lost their personal freedom due to their landlords, these landlords should pay more taxes as "protection fees paid for serfs."
Incidentally, serfs, as a special existence between small farmers and slaves, did not have to pay taxes, but their taxes were to be counted against the lords and landlords.
However, how the lords and landlords treated them, whether by making them pay "rent" or "civil tax," or by directly treating their persons as the lord's private property, would not be questioned by the authorities.
As for farmers, although the pressure was significantly reduced according to the "Basic Tax" rules mentioned above, there were still some taxes specifically targeting them.
One was the tithe required by the Church; although all legitimate religions in Theodosia had reduced their tithe collections at Manuel's request, it did not mean they stopped collecting altogether.
The second was the improved family tax in the new tax law, which collected a fixed amount of tax based on the number of adult males in a farmer's family.
This tax was collected directly by the exaktor.
Taxes could be paid directly in ducats or in agricultural products and other goods.
"As long as the tax can be collected, whether in kind or in currency, it should be blessed by the benevolent Holy Father and the 'Theodosian Dignitaries' whom they favor." The new tax law specifically included this remark.
However, not all independent landholders had to pay taxes; at least the city defense cavalry soldiers did not have to pay any taxes except the Basic Tax and commercial taxes, "because their military service itself is a form of tax, a sacred right bestowed upon them by the Holy Father, and for this, even the Basic Tax should be occasionally reduced for them." Manuel explained this in the new tax law.
But as a trade-off, they could not trade land, neither sell nor buy.
These were the main types of taxes that the Eastern Orthodox had to pay, but for pagans, there were some unique taxes.
According to the new tax law, any pagan must regularly pay ducats annually based on their annual income, roughly fluctuating between 1 ducat and 200 ducats, depending on their social status and income.
"They should have converted to the true faith, but the Holy Father and the Son are merciful, only requiring the Principality to make them pay a 'True Faith Tax' as a small price for not believing in the true faith in Theodosia." Manuel annotated this in the new tax law.
The new tax law also had other miscellaneous provisions, such as prohibiting any usury among the populace.
"If a pagan issues usurious loans, he shall be directly hanged, immediately.
If it is a clergyman, there is suspicion of heresy, and he must be sent to the Inquisition for further investigation." It was clear which groups this targeted.
Also, regarding wasteland reclamation, the new tax law promised a significant tax reduction for free farmers who reclaimed wasteland, to encourage land cultivation.
Oh, and what if one couldn't pay taxes on time?
No problem, the new tax law humanely provided a temporary substitute tax: the labor tax.
The specific content was simple: performing labor equivalent to the tax amount as a substitute for the original tax payment.
The type of labor to be performed would likely involve helping out at monasteries with the elderly, weak, and sick, repairing infrastructure, or assisting in building fortresses and houses.
However, Manuel believed that no one would voluntarily want to perform labor, as unlike the strictly defined tax amounts, the terms for performing labor were intentionally vague, precisely to allow exaktors and tax collectors flexibility in enforcement.
As for how to deal with those unwilling to pay taxes and unwilling to perform labor, it was simple: "First, the relevant exaktor will issue a warning, ordering them to pay the tax or perform the labor.
If there is no response within a week, the "Watchers" Force will directly arrest them and hand them over for judgment." Manuel stipulated this in the relevant articles of the new tax law.
These were the specific contents of Theodosia's tax reform this time.
When the Goth Dynasty was established in the future, the tax laws of the entire Roman Empire were more or less based on this set of tax laws implemented by Basileus during his Crown Prince era in Theodosia.
① A masterpiece by Emperor Nikephoros II of the Macedonian Dynasty of the Eastern Roman Empire, later abolished under pressure.
It was later restored during the reign of Basil II, but was abolished by his brother Constantine VIII after Basil II's death.