B: The Sugar Act

Definition of the Sugar Act (a BRITISH ACTION)

The Sugar Act of 1764 was a British Law, passed by the Parliament of Great Britain on April 5, 1764, that was designed to raise revenue from the American colonists in the 13 Colonies. The Act set a tax on sugar and molasses imported into the colonies which impacted the manufacture of rum in New England.

Purpose of the Sugar Act:

The Sugar Act was part of the policy of Mercantilism that favored England by controlling trade, especially in respect of the import of sugarcane from the West Indies. The Purpose of the Sugar Act of 1764 was to:

• • Reduce the rate of tax on molasses but ensure the new tax could be collected by increased British military presence and controls

  • Establish British admiralty courts for tax violators where a judge decided the outcome rather than in colonial courts

  • Regulate the trade by effectively closing the legal trade to non-British suppliers. The Act was designed to stop trade between New England and the Middle colonies with French, Dutch, and Spanish in the West Indies

  • Provide for the seizure of cargoes violating the new rules

  • Reduce the practice of smuggling bribery, intimidation and corruption in the colonies which were used to avoid paying taxes

Effect and COLONIAL RESPONSE to The Sugar Act of 1764

The effect of the Sugar Act on the colonists was the economic impact as well as the constitutional issue of taxation without representation. The English policy of Salutary Neglect (which basically allowed British officials to turn a 'blind eye' to trade violations) that was in effect from 1607-1763 encouraged the colonists to violate the law by bribing customs officials and smuggling. The colonists were undergoing a period of financial difficulties and their resentment was due to both the economic impact of the Sugar Act as well as the constitutional issue of taxation without representation. The Sugar Act of 1732 was seen as detrimental to Colonial America and was one of the laws that sowed the seeds of dissension and rebellion in the colonies when it was more rigorously enforced. The Sugar Act and the Stamp Act were some of the laws that led to anger, resentment, dissension and ultimately revolution in Colonial America - the American Revolutionary War (1775–1783) and the Declaration of Independence from Great Britain.

The Sugar Act was repealed in 1766 and replaced with the Revenue Act of 1766, which reduced the tax on molasses imports, British or foreign.