Very interesting find, I'm going green...
Dated pieces are of high importance for documenting similar items. Judging from the shades I think it is a side axe, hence a tool for shaping beams of wood and the haft could be a later replacement. Nevertheless, I've seen side axes re-mounted periodly for using in battle - although being awkward for actucal use in combat.
The three tower (lower side towers and higher central tower) theme is known to me from crusader iconography and usually stands for 'city', so this, plus the other embelishments and decorated haft could have been an official/symbolic tool of rank, like for a head of a carpenters guild or such. The Saxon miners guild axe is very iconic.