Winter-Magic Tax

In realms where magic is relatively common, magical items are considered signs of wealth and power, and therefore get taxed very heavily. The owner of any magic item can expect to be taxed about 1 gold piece per 100 experience points of value in the AD&D 2nd Edition Dungeon Masters Guide. Thus, the owner of ring of invisibility would owe 15 gp while the holder of a vorpal sword would be taxed 100 gp.

Note that all magic from scrolls to potions and even artifacts (if known) is taxable. This is one very good reason why player characters new to an area should keep their magical powers quiet, as even travellers and nonresidents just “passing through” can be taxed if the collectors catch up with them. It is therefore possible for characters versed in world-spanning adventures to get taxed many times in the course of a year. However, they can only legally be taxed once in any kingdom, and are given a receipt to prove the payment.