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2) Police Power
Inherent Powers of Government
→ the right or power of the STATE to enact laws
or regulations in relation to person & property as
may promote:

Power of Eminent Domain a) public health

b) public morals
Police Power
c) public safety

Power of Taxation d) public welfare

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Police Power
What constitutes public welfare?
→ is based on two (2) Latin maxims (principles)
▪ Public safety
1) “salus populi suprema est lex”
▪ Public security
→ the welfare of the people is the supreme law ▪ Public health
→ is based on two (2) Latin maxims (principles): ▪ Public morals
2) “sic utere tuo ut alienum non laedas” ▪ Public
→ use your own as not to injure another’s property
convenience
▪ General
“the state must ban actions that are
likely to cause direct harm to others” prosperity

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Examples of the exercise Example of police power:

of police power for public welfare: 4) Public / general welfare

> regulating the

prices of
commodities
SRP
To protect public
safety, the law
considers as crime the
acts of rape, murder,
homicide, kidnapping,
physical assault, etc. > regulating the
price of & texting

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Examples of the exercise

of police power for public welfare:
II. Power of Eminent Domain
• To protect public health, local ordinance prohibits ▪ This is the power of the state to acquire
smoking in public places. private property for public purpose, even if
• To protect public morals, the law penalizes the acts of the owner refuses consent, upon payment
prostitution.
of just and adequate compensation.
• To promote public convenience, traffic rules and
regulations are implemented.
• To promote general prosperity, the law criminalizes the
act of issuing bouncing checks.

Scope of Police Power:

▪ This is the most pervasive of all state powers, the least
limitable and the most demanding among the state powers.

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Inherent Powers of Government

1) Power of Eminent Domain
→ the right or power of the STATE to
expropriate private property for public
use upon paying the owner with a just
compensation
Power of Eminent Domain
▪ The power of eminent domain is the
right to reassert, temporarily or
permanently, any part of the territory
of the state whenever public interest
requires it.

Who will determine the just compensation?

→ the just compensation will be determined by

the Court based on the fair market
value

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Requisites for the exercise of power of eminent domain:

1. There must be a necessity for taking the private
property.
2. What is being taken is a private property.
3. The private property taken should be used for
public purpose.
4. Just compensation must be paid for the private
property taken.
5. Due process of law must be observed in the
process of expropriation.
III. Power of Taxation
▪ It is the power imposed on individuals and properties by
which the state raises revenues to defray the necessary
expenses of the government.
▪ Tax is the lifeblood of the government.
▪ The revenues of the state are principally raised through
taxation.

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Rationale for Taxation Inherent Limitations of Taxation:

▪ Taxes can be levied for public purpose only.
▪ Hence, every person must contribute his share in the ▪ Taxes can be imposed only within the territory of the
operation of the government. taxing state.
▪ The government, for its part, is expected to respond in the ▪ The government is exempted from taxation.
form of tangible and intangible benefits intended to improve ▪ One state cannot tax another state.
the live of the people.
▪ This symbiotic relationship between the people
(taxpayers) and the government (tax collector) is the
rationale for taxation.

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Constitutional Limitations of Taxation Constitutional Limitations of Taxation

▪ Due process of law must be observed • Taxes must be progressive

– Hence, tax must not be confiscatory
▪ Equal protection of law must be observed
– The uniform rule of taxation means that persons or
things belonging to the same class shall be taxed the
same rate.
– The equitable rule of taxation means that the tax
burden must be imposed according to the taxpayer’s
capacity to pay.
– Progressive system of taxation means that, as the
resource of the taxpayer becomes higher, his tax rates
likewise increase.
• This is based on the ability to pay and the
implementation of the social justice principle which
states that the more affluent should contribute more to
the community’s benefit.

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Characteristics of Inherent
Two Ways of Levying Taxes:
Powers of the State:
▪ Income tax is a direct ▪ A sales tax is an ▪ They are all inherent in the state. Soon as a
state exists, these powers go along with it—
tax—everyone who indirect tax and they are not granted by the Constitution.
earns a certain affects only those ▪ They are all necessary and indispensable for
amount has to pay who buy the taxed the continued existence of a state.
income tax. goods. ▪ They are the means by which the state
interferes with the private property of the
citizens.
▪ They are all primarily legislative in nature.
▪ They presuppose equivalent compensation
whenever they affect the citizens.

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