The Inherent Power of the state

There are three inherent powers of the state: 1) police power; 2) power of eminent domain; and 3)
power of taxation. As being inherent, it means that these powers can never be taken away as long as the
state exists.

1) Police Power. Police power is an inherent trait of sovereignty. Considered to be the most
encompassing of the three powers, police power is defined as the power conferred by the
Constitution in the legislature to establish wholesome laws, statutes, and ordinances inconsonant
with the Constitution, either with penalties or without, for the good and welfare of the
commonwealth, and the subjects of the same.

It is important to note that police power is lodged primarily in the National Legislature. It cannot
be exercised by any group not possessing legislative power; even the courts cannot compel the
exercise of this power through any judicial process. However, the National Legislature may
delegate this power to the President, administrative boards, law-making bodies of municipal
corporations, or local government units. The agents can exercise only such legislative powers as are
conferred on them by the national law-making body.

Moreover, police power gives the state the power to regulate individual’s freedoms and
property rights to promote (1) public safety, (2) health and (3) morals (4) public convenience, and
(5) general prosperity. This is justified under the maxims salus populi est suprema lex or the
“welfare of the people is the supreme law” and sic utre tuo ut alienum non laedas or that “one
should not use his/her own property in such a manner as not to injure that of another”.
Requisites of a valid police measure:

Lawful Subject: The exercise of police power is generally for the interests of the public. It requires
the priority of the welfare of the many over the comforts of the few.

Lawful Means: In exercising police power, the means employed must be reasonably essential for
the accomplishment of the purpose and not unjustifiably oppressive upon individuals, hence must
adhere to the safeguards guaranteed by the Bill of Rights.

2) Power of Eminent Domain. This power only affects property rights. Also known as Power of
Expropriation, the power of eminent domain is defined as the power of the State or those to whom
the power has been deputized to take and expropriate private property for public use, which can
only be done on the condition of providing reasonable and just compensation to be ascertained
according to law. Moreover, the property to be appropriated shall not be limited to private property.
Public property may also be taken provided there is a specific grant of authority to the delegate.

A law is usually passed by the legislature allowing the expropriation of private property for
public use. However, the Supreme Court has recurrently ruled that the exercise of eminent domain
is binding if there is just payment or compensation to the owner of the property based on fair
market value.

Requisites for the proper exercise of the power:

a) Taking of private property. For the ‘taking’ of property to be valid, it should conform to
the following requisites:

1) Expropriator must enter a private property

2) Entry must be for more than a momentary period

3) Entry must be under warrant or color of authority

 4) The property must be devoted to public use or otherwise informally appropriated or
injuriously affected

5) Utilization of the property must be in such a way as to oust the owner and deprive him of
beneficial enjoyment

b) Public use/purpose. This can be defined using two concepts: 1) the traditional
concept and 2) the concept of vicarious benefit. In a traditional concept, the number of
actual beneficiaries defines public purpose. If the benefits favor only a few
individuals, then the purpose is not public. The concept of vicarious benefit, on the
other hand, determines purpose as public as long as the society, in general, is indirectly
benefited, i.e. conversion of a slum area into a model housing community.

c) Payment of just compensation. It is a just compensation if a full and fair

equivalent of the property taken is given to the private owner by the expropriator. This
is done to indemnify the owner fully for the

3) Power of Taxation. This power gives the state the authority to impose taxes to finance its
operations. A government exists by necessity but it cannot exist without any funds to run the state.
Thus it has to raise revenues or taxes to cover the necessary expenses of the state. According to
Gonzalo et al (1999), taxation may be defined as “the power of the sovereign to impose burdens or
charges upon persons, property or property rights for the use and support of the government to
enable it to discharge its appropriate functions”.

The power of taxation is both inherent and legislative because only the legislature can make
tax laws. As representatives of the people, they have the authority to impose compulsory levies on
persons, property objects, services, and transactions to increase government revenues for resource
allocation, income redistribution, or economic stability (Gonzalo et al., 1999). For this reason, the
1987 Philippine Constitution mandates that any proposed legislation relating to taxes must
originate from the House of Representatives. The Senate cannot initiate tax bills; only members of
the Lower House who represent the various districts and sectors throughout the country are
authorized to file tax bills.