Taxes on glass, paint, oil, lead, paper, and tea were applied with the design of raising £40,000 a year for the administration of the colonies. The result was the resurrection of colonial hostilities created by the Stamp Act.
Reaction assumed revolutionary proportions in Boston, in the summer of 1768, when customs officials impounded a sloop owned by John Hancock, for violations of the trade regulations. Crowds mobbed the customs office, forcing the officials to retire to a British Warship in the Harbor. Troops from England and Nova Scotia marched in to occupy Boston on October 1, 1768. Bostonians offered no resistance. Rather they changed their tactics. They established non-importation agreements that quickly spread throughout the colonies. British trade soon dried up and the powerful merchants of Britain once again interceded on behalf of the colonies.
The first of the Townshend Acts, sometimes simply known as the Townshend Act, was the Revenue Act of 1767. This act represented the Chatham ministry's new approach for generating tax revenue in the American colonies after the repeal of the Stamp Act in 1766. The British government had gotten the impression that because the colonists had objected to the Stamp Act on the grounds that it was a direct (or "internal") tax, colonists would therefore accept indirect (or "external") taxes, such as taxes on imports. With this in mind, Charles Townshend, the Chancellor of the Exchequer, devised a plan that placed new duties on paper, paint, glass, and tea that were imported into the colonies. These were items that were not produced in North America and that the colonists were only allowed to buy from Great Britain.
The British government's belief that the colonists would accept "external" taxes resulted from a misunderstanding of the colonial objection to the Stamp Act. The colonists' objection to "internal" taxes did not mean that they would accept "external" taxes; the colonial position was that any tax laid by Parliament for the purpose of raising revenue was unconstitutional. "Townshend's mistaken belief that Americans regarded internal taxes as unconstitutional and external taxes constitutional", wrote historian John Phillip Reid, "was of vital importance in the history of events leading to the Revolution." The Townshend Revenue Act received the royal assent on 29 June 1767. There was little opposition expressed in Parliament at the time. "Never could a fateful measure have had a more quiet passage", wrote historian Peter Thomas.
The Revenue Act was passed in conjunction with the Indemnity Act of 1767, which was intended to make the tea of the British East India Company more competitive with smuggled Dutch tea. The Indemnity Act repealed taxes on tea imported to England, allowing it to be re-exported more cheaply to the colonies. This tax cut in England would be partially offset by the new Revenue Act taxes on tea in the colonies. The Revenue Act also reaffirmed the legality of writs of assistance, or general search warrants, which gave customs officials broad powers to search houses and businesses for smuggled goods.
The original stated purpose of the Townshend duties was to raise a revenue to help pay the cost of maintaining an army in North America. Townshend changed the purpose of the tax plan, however, and instead decided to use the revenue to pay the salaries of some colonial governors and judges. Previously, the colonial assemblies had paid these salaries, but Parliament hoped to take the "power of the purse" away from the colonies. According to historian John C. Miller, "Townshend ingeniously sought to take money from Americans by means of parliamentary taxation and to employ it against their liberties by making colonial governors and judges independent of the assemblies."
Some members of Parliament objected because Townshend's plan was expected to generate only ₤40,000 in yearly revenue, but he explained that once the precedent for taxing the colonists had been firmly established, the program could gradually be expanded until the colonies paid for themselves. According to historian Peter Thomas, Townshend's "aims were political rather than financial".