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The Stamp Act of 1765 was the first internal tax levied directly on American colonists by the British government. The act, which imposed a tax on all paper documents in the colonies, came at a time when the British Empire was deep in debt from the Seven Yearsâ War (1756-63) and looking to its North American colonies as a revenue source.
The Stamp Act: In passing the Sugar Act, Parliament indicated that a stamp tax could be forthcoming. Commonly used in Britain with great success, stamp taxes were levied on documents, paper goods, and similar items.The tax was collected at purchase and a tax stamp affixed to the item showing that it had been paid.n passing the Sugar Act, Parliament indicated that a stamp tax could be forthcoming. Commonly used in Britain with great success, stamp taxes were levied on documents, paper goods, and similar items. The tax was collected at purchase and a tax stamp affixed to the item showing that it had been paid.