It is an enforced contribution
– payment ismandatory not discretionary.
It is generally payable in money
– someexceptions: (1) when law provides that backpaycertificates or government bonds are acceptablefor payment of taxes; (2) when property beingsold at public auction because of delinquenttaxes is declared forfeited and applied to thepayment of the tax.
It is proportionate in character
– the taxburden should be allocated on some reasonablebasis of apportionment, primarily on the basis of ability to pay and secondarily on benefitsreceived.
d.It is levied on persons, property, or theexercise of a right or privilegee.It is levied by the State which has jurisdiction over the subject or object of taxationf.It is levied by the law-making body of theStateg.It is levied for publics purpose or purposes
Taxation From Other Inherent Powersof the StateTAXATION vs. POLICE POWER vs. EMINENTDOMAIN
As to purpose
– for the support of the government
_- for public use
– to promote general welfare, publichealth, public morals, and public safety.
2)As to compensation:Taxation
– Protection and benefits received from thegovernment.
– just compensation, not to exceedthe market value declared by the owner oradministrator or anyone having legal interest in theproperty, or as determined by the assessor,whichever is lower.
– The maintenance of a healthyeconomic standard of society.
3)As to persons affected:Taxation and Police Power
– operate upon acommunity or a class of individuals
– operates on the individualproperty owner.
As to authority which exercises the power
Taxation and Police Power
– Exercised only by thegovernment or its political subdivisions.
– may be exercised by publicservices corporation or public utilities if granted bylaw.
As to amount of imposition
– Generally no limit to the amount of taxthat may be imposed.
– Limited to the cost of regulation
– There is no imposition; rather, it isthe owner of the property taken who is just paidcompensation.
As to the relationship to the Constitution
Taxation and Eminent Domain
– Subject tocertain constitutional limitations, including theprohibition against impairment of the obligation of contracts.
Police Power –
Relatively free from constitutionallimitations and superior to the non-impairmentprovisions thereof.b.
Taxation From Other Monetaryimpositions
– amount charged for the cost and maintenanceof property used;
– punishment for the commission of acrime.
– amount collected in lieu of criminal prosecution in cases of tax violations;
– levied only on land basedwholly on the benefit accruing thereon as a result of improvements of public works undertaken bygovernment within the vicinity.
license or fee
– regulatory imposition in theexercise of the police power of the State;
– exaction designed to stabilize thecurrency
custom duties and fees
– duties charged uponcommodities on their being imported into orexported from a country;
a tax is not a debt but is an obligationimposed by law.
– a legislative grant of money in aid of aprivate enterprise deemed to promote publicwelfare.
– a broad term that includes taxes andincome from other sources as well.
– in its general sense, it signifies any tax,tribute or duty. In its limited sense, it means a dutyon imported goods and merchandise.License Fee v. TaxIf the purpose is primarily revenue, or if revenue is,at least, one of the real and substantial purposes, then theexaction is a tax.If the purpose is regulatory in nature, it is a license. Special assessment v. tax1.A special assessment tax is an enforcedproportional contribution from owners of landsespecially benefited by public improvements2.A special assessment is levied only on land.3.A special assessment is not a personal liability of the person assessed; it is limited to the land.4.A special assessment is based wholly onbenefits, not necessity.5.A special assessment is exceptional both as totime and place; a tax has general application. Tax vs. Toll
is a sum of money for the use of something. It isthe consideration which is paid for the use of a road,bridge, or the like, of a public nature.
on theother hand, are enforced proportional contributionsfrom persons and property levied by the State by
NOTES |3Sotelo, MS TAX1