Aleks Burner wrote: First I wanted to know if the citizens have to pay taxes and imposition to the government? I've read that the administration was paid by the public treasury, but what is it made of?
Well, I can answer about taxes. I'll let someone else explain how the SC works.
CDS citizens pay monthly "tier" for the land they use, in the same way that all other residents of SL who own land pay monthly tier for their land. Some SL residents who own land on the Second Life "mainland" areas pay their tier to Linden Labs directly (the owners of SL). But many other SL residents own land on what are called "private islands", which are separate sims each owned by a resident "Estate Owner" who has bought it from Linden Labs. The Estate Owner pays Linden Labs a monthly tier, and the Estate Owner then sells parcels of land on their sim to residents, who pay their tier to the Estate Owner. This is the way the CDS works.
The four sims of the CDS are owned by Rudeen Edo, who is one of my alts. Unlike other "non-democratic" areas of SL, Rudeen simply holds the estate ownership on behalf of the citizens of the CDS, and, should those citizens so decide, they would transfer that ownership to another alt account. Rudeen's function is to collect tier from the resident citizens and to pay tier to Linden Labs for the monthly cost of the sims.
In fact, Rudeen is like a bank account. The CDS has always taken a conservative financial approach of collecting more tier... (what you can readily see is in fact "property taxes")... than it pays to Linden Labs each month. With that extra money the expenses of administration are paid. They include exchange fees, nominal administrative stipends, and promotional and event expenses. Since Rudeen is my alt, I am designated the Treasurer, and I pay these expenses based on instructions from our executive, who together with our representative assembly carries out the will of the community. Each term a budget is prepared on which the expenditures are based.
One final note. Most citizens own at least a small bit of land, and its this land which determines the amount of their taxes (their tier). But we have made provision for citizenship for those who decide not to own land. These people can belong to a group which owns land, and then contribute at least a small share of the taxes which that group pays for its land.
I hope that helps .
Sudane...................