CHAPTER 4: FUNDAMENTAL POWERS OF THE STATE

The fundamental powers of the state are:

1. Police Power – power of the State to regulate liberty and property for the promotion of the
general welfare.

2. Power of Eminent Domain – enables the State to forcibly acquire private property, upon
payment of just compensation, for some intended public use.

3. Power of Taxation – the State is able to demand from the members of society their
proportionate share or contribution in the maintenance of the government.

NOTE: These powers are inherent and does not need to be expressly conferred by constitutional
provision.

SIMILARITIES
1. Inherent in the state and may be exercised by it
without need of express constitutional grant.
2. Not only necessary but indispensable. The
State cannot continue or be effective unless it is
able to exercise them (powers).
3. Methods by which the State interferes with
private rights.
4. They all presuppose an equivalent
compensation for the private rights interfered with.
5. They are exercised primarily by the legislature.
DIFFERENCES
1. The police power regulates both liberty and
property.
The power of eminent domain and the power of
taxation affect only property rights.
2. The police power and the power of taxation
may be exercised only by the government.
The power of eminent domain may be exercised
by some private entities.
3. The property take in the exercise of the police
power is destroyed because it is noxious or
intended for a noxious purpose.
The property taken under the power of eminent
domain and the power of taxation is intended for
a public use or purpose and is therefore
wholesome.
4. The compensation of the person subjected to
the police power is the intangible altruistic feeling
that he has contributed to the general welfare.
The compensation involved in the other powers is
more concrete, to wit, a full and fair equivalent of
the property expropriated or protection and public
improvements for the taxes paid.

Police Power vs Power of Eminent Domain

In the exercise of Police Power, a property right is impaired by regulation or the use of property is
merely prohibited, regulated or restricted to promote public welfare.(Payment of just compensation
is not required)
Examples:
1. A building on the verge of collapse to be demolished for public safety
2. Obscene materials to be destroyed in the interest of public morals

In the exercise of the Power of Eminent Domain, property interests are appropriated and applied to
some public purpose which necessitates the payment of just compensation.
Examples:
1. Acquisition of lands for the construction of public highways
2. Acquisition of agricultural lands under the agrarian reform law for redistribution to
qualified farmer beneficiaries

Police Power vs Power of Taxation

Taxes are the lifeblood of the government. Without taxes, government cannot fulfill its mandate of
promoting the general welfare and well-being of the people.

On the other hand, Police Power is the power of the state to promote public welfare by restraining
and regulating the use of liberty and property.

The justification is found in the latin maxims:

1. Salus Populi Est Suprema Lex – the general welfare of the people is the supreme
law
2. Sic Utere Tou Ut Alienum Non Laedas – so use your property as not to injure the
property of others

The power to “regulate” means the power to: 1) protect; 2) foster; 3) promote; 4) preserve; and, 5) control.

Limitations
“Constitutional provisions for the security of persons and property should be liberally construed.”