CITIES: A walled town that has at least 10,000 people is called a city. Cities do not legally differ from towns in most things such as taxation and noble oversight.
Wealthy, populous cities often offer their Duke, Prince or the King (in Karlsland) an immense fee to buy a charter. The charter releases the town from direct rule by the lord in exchange for the one-time fee and a substantially reduced annual tribute. Each chartered city is ruled by a Lord Mayor, who is typically chosen by a town council for a 1 to 5 year term, but who is sometimes hereditary. Chartered cities have a minimum population of 10,000 people. It passes 15% of the 1gp/inhabitant/month taxation on to the city’s original overlord.
TOWNS: A walled settlement of at least 1000 people is called a town. Towns usually are beholden to a lord, baron, duke or prince. Their population is taxed at 1gp per month as village population. The overlord appoints a knight to oversee the town. This knight is titled the Steward of the town.
VILLAGES: Over 80% of the population of the realm lives in small, farming villages. They sometimes will have a stockade or blockhouse for defense, if near the frontier. The overlord of the village appoints a commoner called a Bailiff to oversee the village. Villagers pay the normal 1gp per person per month in taxes.