Yes, pay (1000 Gold)

Lily: I have the 1000 gold now...

Taxman: I am glad you have my lady... Couldn't have bared to chain you... Well.... My work here is done, I wish you a better harvest next year my lady. If you will excuse me, I have plenty of other estates to visit... Farewell!

As they ride out, you are left with your dignity shattered... Those were some of your favourite clothes... But next year, you will buy them back, that is for sure... But now. Back to the estate.