As I finish up my own taxes (yes, I actually do my own taxes) I realized, wouldn't your player characters also be taxed in their own little world. Why yes, but you don't usually worry about it because it slows down play. Slowing down play equals not so much fun, thus we don't usually do it. But here are some reasons you may want to do so.
One, the characters have more money then you really want floating around in your campaign. The feudal system was known for being harsh and taking what it wanted. The characters are flaunting money by buying things usually reserved for royalty, then they will be noticed by the nearest tax officials. They will come calling and ask for their share. It doesn't have to be a huge percentage, because if the player characters have a large amount of money it will add up quick. And if they don't pay, they officially become outlaws. Do they really want to give up that cushy position as the the Baron's protection force just over a small tax?
And what if they have just too many magic items? They could be taxed every time they go into a city, of course! Have a city with a gold piece per magic item tax. It will be annoying at first, but will start syphoning off some gobs of money after awhile. Maybe enough to have them sell their magic items they really don't need.
But you also can use it just illustrate a point. Maybe taxes are too high in an area and the characters have to pay it too. Maybe they will see it as an injustice for the poor and try to make that right. And adventure hook all in itself!
Happy Writing
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