In March 1765, the British Parliament passed the Stamp Act which introduced the first direct tax on the American colonies. Starting from November 1, 1765 every legal document had to be written on specially stamped paper, showing proof of payment. Deeds, wills, marriage licenses — contracts of any sort — were not recognized as legal in a court of law unless they were prepared on this paper. In addition, newspaper, dice, and playing cards also had to bear proof of tax payment.
Even before its adoption the Stamp Act provoked vivid protests of American activists. Colonial leaders, including Benjamin Franklin, believed that this Act was a typical case of taxation without representation. They referred to the 1689 English Bill of Rights which forbade the imposition of taxes without the consent of Parliament. As the colonists were not represented in Parliament, they considered taxes imposed upon them as a violation of their rights as Englishmen.
British supporters of the Stamp Act argued that theoretically Parliament represented the interests of all British subjects but their American opponents rejected this claim. The matter is that the colonists regularly elected their own legislatures having the right to introduce new taxes, that’s why they denied the right of taxation to Parliament where colonies were not represented.
Also, the act stated that admiralty courts would have jurisdiction over offenders. This was viewed as an attempt by Parliament to lessen the power of the colonial courts.
By the end of 1765, all the colonies but two had sent formal protests to Parliament. In addition, many merchants began boycotting British goods.
Moreover on October 19, the Stamp Act Congress met in New York and was attended by nine colonies (the rest later endorsed its actions). As a result of this meeting colonial leaders issued the “Declaration of Rights and Grievances” which stated that only colonial assemblies had the right to tax, the use of admiralty courts was abusive, colonists possessed the Rights of Englishman, and Parliament did not represent them.
Appalled by violent reaction and stubborn opposition of American colonists Parliament agreed to repeal the Stamp Act with the condition that the Declaratory Act be passed. This act stated that Parliament had the right to make laws for the colonies in all matters. The Stamp Act was officially repealed on March 18, 1766, and the Declaratory Act passed the same day.