Stamp act facts for kids

A stamp act is a law that says you have to pay a special tax when you transfer certain documents. When you pay this tax, your document gets an official stamp. This stamp makes the document legal.

Many different things have been covered by stamp acts over time. These include playing cards, dice, cheques, mortgages, contracts, marriage licenses, and newspapers. Sometimes, you had to get the document physically stamped at a government office. Other times, you could buy special adhesive stamps to put on the document.

This type of tax was first thought up in the Netherlands in 1624. Many countries have used stamp acts, including Australia, Canada, China, Ireland, India, the United Kingdom, and the United States. The money collected from a stamp act is called stamp duty.

Stamp Acts in Australia

Australian states started using stamp acts in the late 1800s. These laws required stamps on many business papers. This included things like negotiable instruments (like checks), promissory notes (promises to pay money), and receipts.

For example, in Western Australia, a big change to these duties happened in 1921. In South Australia, the Stamp Duties Act started in 1923. It has been updated almost every year since then.

Stamp Acts in England and the United Kingdom

Early Stamp Acts (1694-1713)

Quick facts for kids Stamps Act 1694
Act of Parliament
Parliament of England
Long title	An Act for granting to theire Majesties severall Dutyes upon Velum Parchment and Paper for Four Yeares towards carryyng on the warr against France.
Citation	5 & 6 Will. & Mar. c. 21
Dates
Royal assent	25 April 1694
Commencement	28 June 1694
Repealed	1 January 1871
Other legislation
Repealed by	Inland Revenue Repeal Act 1870
Status: Repealed

Stamps Act 1712
Act of Parliament
Parliament of Great Britain
Long title	An Act for altering the Stamp Duties upon Admissions into Corporations or Companies; and for further securing and improving the Stamp Duties in Great Britain.
Citation	10 Ann. c. 18 (Ruffhead: c. 19)
Dates
Commencement	5 July 1765
Repealed	1 July 1855
Status: Repealed

The first stamp duty in England began in 1694. It was based on the Dutch idea. This law was called An act for granting to Their Majesties several duties on Vellum, Parchment and Paper. It was meant to help pay for a war against France.

This tax put a small fee on many legal documents. These included insurance papers, court documents, and official grants. It brought in about £50,000 a year. Even though it was supposed to be temporary, it worked so well that they kept it going.

Stamp Act of 1712

The Stamp Act 1712 was a law passed in the United Kingdom on August 1, 1712. It created a new tax especially for publishers, like those who made newspapers. The tax was one penny for a whole newspaper sheet. It was a halfpenny for a half sheet. There was also a shilling for each advertisement.

This act also taxed pamphlets, legal documents, and other papers. The tax increased over the years, especially around 1815. This was during a time called the "taxes on knowledge" struggle. The tax was lowered in 1836 and finally removed in 1855.

This stamp tax made newspapers more expensive. It especially hurt cheaper papers and people who didn't have much money. This is because the tax was a bigger part of the total price for them. The tax also made it harder for people to publish things that criticized the government. For example, a famous newspaper called The Spectator stopped publishing the same year the tax started. When the tax was removed in 1855, it allowed cheaper newspapers to be printed again.

Modern UK Stamp Acts

Stamp Duties Management Act 1891
Act of Parliament
Parliament of the United Kingdom
Long title	An Act to consolidate the Law relating to the Management of Stamp Duties.
Citation	54 & 55 Vict. c. 38
Dates
Royal assent	21 July 1891
Status: Amended

Stamp Act 1891
Act of Parliament
Parliament of the United Kingdom
Long title	An Act to consolidate the Enactments granting and relating to the Stamp Duties upon Instruments and certain other enactments relating to Stamp Duties.
Citation	54 & 55 Vict. c. 39
Dates
Royal assent	21 July 1891
Status: Amended

Many older stamp acts were replaced by two important laws in 1891: the Stamp Duties Management Act 1891 and the Stamp Act 1891. These two laws still form most of the UK's rules about stamp duties today.

In 1986, a new type of stamp duty tax was introduced called Stamp Duty Reserve Tax. This tax was put on certain stock market deals in London that didn't use paper documents.

The HM Revenue and Customs still collects stamp duties today. They are the oldest taxes that this government department still collects.

Stamp Acts in Israel

Israel used to have a stamp duty on signed documents. This was managed by a law from 1961. However, this stamp duty was removed in 2006.

Stamp Acts in China

China also has a stamp tax. It is one of their "behavioral taxes." Foreign investors in China also have to pay this tax. China's stamp taxes are guided by rules from 1988. In 1997, stamp taxes brought in a lot of money for China.

Stamp Acts in the United States

Stamp Act of 1765

After Great Britain won the Seven Years' War against France, they needed money. This war was known as the French and Indian War in America. So, the British Parliament passed the Stamp Act 1765. This was a direct tax on the British colonies in America.

The law said that many printed materials in the colonies had to be made on special paper. This paper came from London and had an official stamp on it. This included every legal document, magazine, and newspaper. It also covered other papers, even playing cards. Unlike earlier taxes, this stamp tax had to be paid in British money, not in the colonies' paper money.

The main reason for this tax was to help pay for British soldiers in North America. The British government felt that the colonies benefited most from these soldiers. So, they thought the colonists should help pay for them.

The colonists, however, felt their rights were being violated. They believed that only their own local governments could tax them. They had no representatives in the British Parliament. This meant they had no say in how taxes were made or spent. The famous cry "No Taxation without Representation" became very popular. This idea was a big reason for the American Revolution. The colonists didn't think they needed the soldiers or the taxes. The British saw the colonists as defying their lawful rulers.

The Stamp Act caused a lot of anger in the colonies. Colonial assemblies sent many petitions and protests. Groups like the "Committees of Correspondence" formed to connect people from different colonies. They organized boycotts of British goods. People also protested with violence and threats. Tax collectors were attacked. Protests led by the Sons of Liberty often became violent. The word "liberty" was used a lot by colonists during this time. They even held fake funerals for "liberty." They insisted that liberty could not be "taken away without consent."

Some people tried a calmer approach. James Otis, Jr. wrote a very important protest called The Rights of the British Colonies Asserted and Proved. He helped the Massachusetts assembly ask other colonies to meet. This meeting was called the Stamp Act Congress. It took place in New York City in October 1765. Nine colonies sent representatives.

The Stamp Act Congress was an important step for the colonies to work together. They created a "Declaration of Rights and Grievances." This was a petition to the Parliament and the King. It said that only the colonial assemblies could tax the colonists. They specifically criticized the Stamp Act. But they also ended their statement by saying they were loyal to the King.

Opposition to the Stamp Act wasn't just in the American colonies. In Canada, Nova Scotia mostly ignored the law. Ships with unstamped papers were allowed into their ports. Business continued as usual. Newfoundland also had protests. Caribbean colonies like Barbados and Antigua also protested. The worst violence happened on St. Kitts and Nevis. There were riots and people blocked the delivery of stamps. British merchants and manufacturers were also worried. Their sales to the colonies were hurt by the boycotts. They pressured Parliament to change the law.

The Stamp Act was removed in early 1766. However, the Declaratory Act was passed at the same time. This act said that Parliament still had the right to tax the colonies.

Revival of Revenue Stamps

"Revenue stamps" were used again in the United States during the American Civil War. In 1862, the US government started taxing many goods, services, and legal deals. This was to raise money for the huge costs of the war. To show that taxes were paid, a "revenue stamp" was bought and put on the taxed item. This tax continued until 1883, when the war debt was paid off.

In 1898, revenue stamps were issued again. This time, it was to help pay for the Spanish–American War. Taxes were put on many things like alcohol, tobacco, and tea. They were also put on business papers like stock certificates and shipping documents. People bought revenue stamps and put them on these items or papers to pay the tax.

Revenue stamps were used for different products over time. They were finally stopped on December 31, 1967.

Images for kids