The fiscal function of the City Council of Guadalajara in the 17th century

Abstract

This article offers a historical overview of the origins of the resources with which the municipalities financed the maintenance of the cities and their inhabitants, taking the municipality of Guadalajara in the 17th century as a particular case. For this purpose, the authority granted by the Spanish Crown to local governments to acquire their ‘own’ resources is established, and how, in this way, the municipal institution was also a recipient and administrator of a type of tax with a defined structure. It is argued that this situation allowed the formation of a municipal treasury that financed the acquisition of the necessary resources for the sustenance of the city and its inhabitants. However, it is also documented how, at certain points in history, this fiscal structure did not meet its objectives and various alternatives were sought to address the population's needs, such as the assignment – i.e., encabezamiento – of the alcabala collection and the monopoly on coconut wine. The analysis presented here focuses on the diversity of income sources available to a municipality. Additionally, the uniqueness of the case of the Guadalajara council is defended, considering the city's status as the seat of the audiencia and bishopric institutions, as well as recognizing its privileged situation as a commercial hub of the Kingdom of New Galicia.