Legal Definitions - firma burgi

Firma Burgi refers to a historical legal arrangement where an individual or a group was granted the right to collect all the revenues and profits generated within a specific borough or town.

In exchange for this right, the grantee would pay a fixed, predetermined sum annually to the monarch or the lord who held authority over the borough. This arrangement allowed the grantee to manage the borough's finances, collect taxes, market tolls, and other fees, keeping any surplus profit after paying the fixed sum to the grantor.

• Imagine a powerful medieval baron who, needing funds for a military campaign, grants a wealthy merchant named Sir Reginald the firma burgi for the town of Oakhaven. Sir Reginald agrees to pay the baron 500 gold coins each year. In return, Sir Reginald gains the exclusive right to collect all market tolls, property rents, and court fines from Oakhaven's residents. If he collects 700 gold coins in a year, he keeps the 200 gold coin difference as his profit, having fulfilled his obligation to the baron.

• Consider a growing coastal town, Port Royal, under the direct control of the Crown. The King, seeking to streamline administration and ensure a steady income, grants the firma burgi to a council of prominent local citizens. This council collectively pays a fixed annual sum of 1,000 silver pieces to the royal treasury. In exchange, they are empowered to manage the town's affairs, collect customs duties on incoming ships, levy local taxes, and charge fees for fishing rights. Any revenue collected beyond the 1,000 silver pieces remains with the town council to fund local projects or distribute among themselves, demonstrating their right to the borough's profits.