Sugar Act Explained — Section 11

April 5, 1764

Section 11 of the Sugar Act of 1764 explains how the money collected from the taxes would be used to defend, protect, and secure the British Colonies and Plantations in America.

Sugar Act, 1764, Date, Taxes, Reaction, Grenville Acts, AHC

George Grenville, Prime Minister and Chancellor of the Exchequer, was responsible for the Sugar Act of 1764, starting the movement in the 13 Colonies against Taxation Without Representation.

Understanding the Sugar Act of 1764

This entry is part of a series that explains the Sugar Act of 1764, including, rules, regulations, and penalties. To learn more, see History of the Sugar Act and Facts About the Sugar Act. Vocabulary, key people, and primary documents related to the Sugar Act are listed at the bottom of this article.

Section 11 — Collection of Funds

XI. And it is hereby further enacted by the authority aforesaid, That all the monies which, from and after the twenty ninth day of September, one thousand seven hundred and sixty four shall arise by the several rates and duties herein before granted; and also by the duties which, from and after the said twenty ninth day of September, one thousand seven hundred and sixty four, shall be raised upon sugars and paneles, by virtue of the said act made in the sixth year of the reign of his said late majesty King George the Second (except the necessary charges of raising, collecting, levying, recovering, answering, paying, and accounting for the same) shall be paid into the receipt of his Majesty’s Exchequer, and shall be entered separate and apart from all other monies paid or payable to his Majesty, his heirs or successors: and shall be there reserved, to be, from time to time, disposed of by parliament, towards defraying the necessary expences of defending, protecting, and securing, the British colonies and plantations in America.

Explanation

Section 11 of the Sugar Act of 1764 explains how the money collected from the taxes will be managed and used for the benefit of the American Colonies. The key points are:

  1. Effective Date — Starting on September 29, 1764.
  2. Collection of Duties — All money collected from the new rates and duties, as well as from the duties on sugar and paneles (a type of unrefined sugar) as specified by an earlier act from the reign of King George II, will be handled in a specific way.
  3. Exemptions — The money will be used after deducting the necessary costs of collecting, managing, and accounting for these taxes.
  4. Payment into the Exchequer — The remaining money will be paid into His Majesty’s Exchequer, the British government’s treasury.
  5. Separate Accounting — This money will be kept separate from all other funds paid to the King and his successors.
  6. Use of Funds — The money will be reserved and used by Parliament to cover the costs of defending, protecting, and securing the British colonies and plantations in America.

Context

The Sugar Act was a significant part of Parliament’s plan to fund the maintenance of a Standing Army in North America and support the defense of the colonies. By adding taxes on imported goods, the Act intended to generate substantial revenue from the American Colonies. This revenue was essential to help cover the costs associated with the troops and other expenses related to defense, such as building forts. Parliament never intended for the money raised from the Sugar Act to cover all the expenses.

  • Following the French and Indian War, the British government decided to maintain a standing army of 10,000 troops in North America. This was done to ensure the security of the colonies, due to threats from Native American Indian uprisings, such as Pontiac’s Rebellion.
  • The annual expense of maintaining these troops was significant, estimated at over £220,000. The British government needed a reliable source of revenue to cover these costs without excessively burdening British taxpayers.
  • The money collected from the Sugar Act was earmarked for the expanded defense and administration of the colonies. This included the costs associated with the standing army as well as other expenses related to maintaining British government authority and infrastructure in North America.
  • The money was also for fortifications, supplies, and other expenses related to the military.
  • Parliament believed it was fair for the American Colonies to contribute to the expenses incurred in their defense and administration. The Sugar Act was seen as a way to ensure that the colonies paid their share of the costs associated with their protection.
  • The preamble of the Sugar Act clearly stated its purpose as a revenue measure and how the taxes would be used.

Vocabulary

These terms and definitions provide more context for students studying the Sugar Act. For more on the Sugar Act as it relates to the AP US History curriculum, see Sugar ACT APUSH Review.

  • Accounting — The process of recording and managing financial transactions.
  • Arise — To be generated or produced.
  • Authority — The power or right to give orders, make decisions, and enforce obedience.
  • Charges — Costs or expenses incurred in the process.
  • Collecting — Gathering or bringing together.
  • Defraying — Providing money to pay (an expense).
  • Duties — Taxes imposed on imports and exports.
  • Exchequer — The British government’s treasury responsible for receiving and managing public revenue.
  • Exemptions — Specific amounts or items not included or excluded from a general rule.
  • Expences — The costs required for something; expenditures.
  • Levying — The act of imposing or collecting a tax.
  • Majesty — A title used to address or refer to a sovereign, especially a king or queen.
  • Monies — Plural of money; funds.
  • Paneles — A type of unrefined sugar.
  • Parliament — The highest legislative authority in Britain, consisting of the House of Commons, the House of Lords, and the Sovereign.
  • Payable — Required to be paid.
  • Protecting — Keeping safe from harm or injury.
  • Raising — Collecting or bringing together (funds).
  • Receipt — The action of receiving something.
  • Recovering — Collecting unpaid taxes or debts.
  • Reserved — Set aside for a particular purpose.
  • Separate — To keep apart or divide.
  • Successors — People who follow or replace others in positions of authority or rank.

Key People

  • Samuel Adams — Adams helped lead opposition to the Sugar Act in Massachusetts. Went on to become a leader of the Boston Sons of Liberty and one of the most influential men behind the movement for independence.
  • George Grenville — Prime Minister and Chancellor of the Exchequer. Responsible for the design of the Sugar Act and introducing it to Parliament.
  • Stephen Hopkins — Governor of Rhode Island. Critic of the Sugar Act and its impact on the Rhode Island economy and colonial rights.
  • James Otis — Early advocate of the rights of Americans as British subjects. Argued against Writs of Assistance (1761) in the Paxton Case.

Primary Documents

Citation Information

The following information is provided for citations, including APA Style, Chicago Style, and MLA Style.

  • Article Title Sugar Act Explained — Section 11
  • Date April 5, 1764
  • Author
  • Keywords Sugar Act, What did Section 11 of the Sugar Act do
  • Website Name American History Central
  • Access Date June 21, 2024
  • Publisher R.Squared Communications, LLC
  • Original Published Date
  • Date of Last Update June 7, 2024

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