They paid taxes in crops in exchange for protection
By having three separate, independent branches of government (the executive, legislative and judicial) a society has a "balance of power" which means that no one branch can have too much power and become tyrannical. Therefore each of the three branches is compromising.
So they could raise more money.
The Patriot victory at the Battle of Kettle Creek practically ended support for the Loyalist cause in the colony.
