FUNDAMENTAL POWERS OF THE STATE

Inherent Powers of the State:

I . Police Power
Law of overruling necessit use of liberty and property. ! power promoting public welfare by restraining and regulating the

"asis# public necessity and right of State and of public to self-protection and self-preservation. W$o %a e&ercise# generally, the legislature but also: the President, Administrative bodies, and Law-ma ing bodies of L!"#s Re'uisites (Li%itations)# Lawful Subject $ the interests of the public in general, as distinguished from those of a particular class, re%uire the e&ercise of the power' Lawful Means $ the means employed are reasonably necessary for the accomplishment of the purpose, and not unduly oppressive on individuals' When exercised by a delegate: e&press grant by law' within territorial limits $ for L!"s e&cept when e&ercised to protect water supply' and must not be contrary to law.

II . Power of Eminent Domain

power of State to forcibly ta e private property for public use upon payment of (ust compensation

"asis: necessity of the property for public use. W$o %a e&ercise# generally, the legislature but also: the President' Law-ma ing bodies of L!"#s' Public )orporations, and' *uasi-public )orporations. Two stages# determination of the authority of the plaintiff to e&ercise the power and the propriety of its e&ercise' and determination of (ust compensation. Re'uisites# 1. Necessity $ when e&ercised by: )ongress $ political %uestion' +elegate $ (usticiable %uestion 2. Private pr perty $ all private property capable of ownership may be e&propriated, e&cept money and choses in action' may include services ,Republic v. PLDT, 26 SCRA 620-. !. "a#ing# there is ta ing when: i. owner actually deprived or dispossessed of his property' ii. there is practical destruction or a material impairment of value of property' iii. owner is deprived of ordinary use of his property' and iv. owner is deprived of (urisdiction, supervision and control of his property. re%uisites: i. e&propriator must enter a private property' ii. entry must be more than a momentary period' iii. entry must be under a warrant or color of authority' iv. property must be devoted to public use or otherwise informally appropriated or in(uriously affected' v. utili.ation of the property must be in such a way as to oust the owner and deprive him of beneficial en(oyment of the property ,Republic v. Castelvi, 58 SCRA 336-. *+ Public use - has been broadened to include not only uses directly available to the public but also those which redound to their indirect benefit' that only a few would actually benefit from the e&propriation of the property foes not necessarily diminish the essence and character of public use , anosca v. Cou!t o" Appeals, 252 SCRA #$2%. /nce e&propriated change of public use is of no moment. It is well within the rights of the condemnor as owner to alter and decide its use so long as it still for public use. &Republic vs. C.A., '.R. (o. $#658), *ul+ 2, 2002,+ $ust c %pensati n , compensation is %ualified by the word -ust to convey that e%uivalent must be real, substantial, full and fair' the value of the property must be determined either as of the date o" the ta.in/ of the property or the "ilin/ o" the co0plaint, whichever came first. ,1slaban v. v2a. De 3no!io, !.0. 1o. 234546, 7une 68, 6552 4o!0ula5 -- "ai! 0a!.et value of the property, to which must be added the conse6uential 2a0a/es, minus the conse%uential benefits, but in no case will the conse%uential benefits e&ceed the conse%uential damages Fair %ar-et value $ the price that maybe agreed upon by parties who are willing but are not compelled to enter into a contract of sale.

property ta en by reason of e&propriation 0+ &ue pr cess f law $ the defendant must be given an opportunity to be heard.

.onse'uential /a%ages $ consist of in(uries directly caused on the residue of the private

III. Power of Taxation

power by which State raises revenue to defray necessary e&penses of the !overnment.

Sco1e# covers persons, property, or occupation to be ta&ed within ta&ing (urisdiction "asis# power emanating from necessity ,lifeblood theoryW$o %a e&ercise# generally, the legislature but also: Law-ma ing bodies of L!"#s ,Sec.9, Art. :-' and ;he President, under Sec. 68 ,6-, Art. <I of the )onstitution or as incident of emergency powers that )ongress may grant to him under Sec. 6=,6-, Art. <I. Li%itations on t$e Power of Ta&ation# 7nhe!ent li0itations Public purpose' a. 1on-delegability of power' b. ;erritoriality or situs of ta&ation' c. >&emption of government from ta&ation' d. International comity. Constitutional li0itations a. +ue process of law' b. >%ual protection of law' c. "niformity, e%uitability, and progressivity of ta&ation' d. 1on-impairment of contracts' e. 1on-imprisonment for non-payment of poll ta&' f. /rigin of appropriation, revenue, and tariff bills' g. 1on-infringement of religious freedom' h. +elegation of legislative authority to the President to fi& tariff rates, import and e&port %uotas, tonnage and wharfage dues' i. ;a& e&emption of properties actually, directly and e&clusively used for religious, charitable and educational purposes' (. ?a(ority vote of all members of )ongress re%uired in case of legislative grant of ta& e&emptions' . 1on-impairment of the Supreme )ourt#s (urisdiction in ta& cases' l. ;a& e&emption of revenues and assets of, including grants, endowments, donations, or contributions to, educational institutions. Any %uestion regarding the constitutionality of a ta& measure must be resolved in favor of its validity. Any doubt regarding the ta&ability of any person under a valid law must be resolved in favor of that person and against the ta&ing power. Any doubt as to the applicability of a ta& e&emption granted to a person must be resolved against the e&emption.

Dou2le Ta&ation $ additional ta&es are laid: 2. on the same sub(ect' 6. by the same ta&ing (urisdiction' during the same ta&ing period' and =. for the same purpose. +espite lac of specific constitutional prohibition, double ta&ation will not be allowed if the same will result in a violation of the e%ual protection clause ,(achu!a, Revie8e! in Political La8, p.38-.

TA3
2. as to basis Power of ta&ation $ to raise revenue 6. limitation 0ate or amount to be collected unlimited provided not confiscatory.

L4.ENSE FEE

Police power $ to regulate

Amount limited to cost of: ,a- issuing the license and ,b- necessary inspection or police surveillance. =. ob(ect

Imposed on persons or property.

Paid for privilege of doing something but privilege is revocable. 3. effect of non-payment

@usiness or activity does not become illegal.

@usiness becomes illegal.

D4ST4N.T4ON
POL4.E POWER
2. 6. 0egulates both liberty and property >&ercised only by the !overnment

EM4NENT DOMA4N
Affects only property rights ?aybe e&ercised by private entities 1ecessity of the public for the use of private property Property is wholesome and is devoted to public use or purpose )ompensation is full and fair e%uivalent of the property ta en )ontracts may be impaired.

TA3AT4ON
Affects only property rights >&ercised only by the !overnment Public necessity

=. Public necessity and the right of the state and of the public to self-preservation and self-protection. 3. Property intended for a no&ious purpose is ta en and destroyed. 9. )ompensation is the intangible, altruistic feeling that the individual has contributed to the public good 4. )ontracts may be impaired.

Property is wholesome and is devoted to public use or purpose )ompensation is the protection and public improvements instituted by the government for the ta&es paid )ontracts may not be impaired.

POL4.E POWER
2. 6. Lawful sub(ect Lawful means

EM4NENT DOMA4N
2. 6. =. 3. 9. 4. 1ecessity Private property' ;a ing' . Public use' 7ust compensation' +ue process of law.

9hen e:e!cise2 b+ a 2ele/ate5 =. 3. 9. >&press grant by law Aithin the territorial limits ?ust not be contrary to law