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3 INHERENT POWERS

1. POLICE POWER
The Police Power refers to the inherent power of the sovereign state to legislate for the
protection and promotion of heath, welfare, and morals of the community.

It is exercised usually to guard against excesses or abuses of individual liberty. This power is
restricted by the DUE PROCESS CLAUSE of the Constitution which provides that no person may be
deprived of life, liberty or property without the due process of law.

Police power is the inherent power of a government to exercise reasonable control over persons
and property within its jurisdiction in the interest of the general security, health, safety, morals, and
welfare except where legally prohibited.

In the exercise of police power, “property rights of private individuals are subjected to restraints
and burdens in order to secure the general comfort, health, and prosperity of the State.” Even then, the
State’s claim of police power cannot be arbitrary or unreasonable.
After all, the overriding purpose of the exercise of the power is to promote general welfare,
public health and safety, among others. It is a measure, which by sheer necessity, the State exercises,
even to the point of interfering with personal liberties or property rights in order to advance common
good.

2. POWER OF EMINENT DOMAIN

Eminent Domain refers to the power of sovereign state to take private property for public use
and purpose to and with payment of just compensation.

Article III, Section 9, 1987 Constitution provides that:

Section 9. Private property shall not be taken for public use without just compensation.

The power of eminent domain founded upon the idea that the common necessities and interests
of community transcend individual rights and property. Consequently, the state may expropriate private
property when it is necessary in the interest of national welfare.
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3. POWER OF TAXATION

Taxation is the inherent power of the sovereign state exercised through the legislative
to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues
to carry out the legitimate objects of government.

Taxation istheinherent
Taxation is a mode of raising revenue for power ofthe sovereign
public purposes. It is the power by which the state exercised through the
sovereign raises revenue to defray the expenses of legislative to impose burdens
government.
upon subjects and objects
It is a way of appropriating the cost of within its jurisdiction for the
government among those who in some measure are purpose of raising revenues
privileged to enjoy its benefits and must bear its to carry out the legitimate
burdens. objects of government.
As a process, it passes a legislative undertaking through the enactment of tax laws by the
congress which will be implemented by the executive branch of government through the BIR to raise
revenue for its inhabitants in order to pay for its inhabitants in order to pay the necessary expenses of
the government. (Valencia, Income Taxation, Volume 1)

SIMILARITIES AMONG INHERENT POWERS (IAILCL)

I - they are INHERENT in sovereignty. They can be exercised even without being
expressly granted in the constitution

A - they are all necessary ATTRIBUTES of sovereignty because there can be no

effective government without them;

I - they can constitute the three ways by which the state INTERFERES with the
private rights and property;

L - they are all LEGISLATIVE in nature and charter;

C - they presuppose an equivalent COMPENSATION

L - the provisions in the Constitution are just LIMITATIONS on the exercise of these
powers.
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DISTINCTIONS

Police power Eminent Domain Taxation

1. As to Exercised by the May be exercised by Exercised by the

authority who government or its public service government or its
exercise the political companies and political
power subdivision public utilities subdivision

2. As to purpose
Promotion of general To facilitate the To raise revenue
welfare through taking of private in support of the
regulation property for public government;
purpose regulation is
merely incidental
3. Amount of
monetary Limited to the cost No imposition. The No ceiling except
impositions of regulation, owner is paid the fair inherent
issuance of license market value of his limitations
or surveillance property

4. Persons Affects only an Affects upon

affected Affects upon
individual as the community or class
community or class
owner of a of individuals
of individuals
particular property

5. Benefits The person Protection of a

received Maintenance of secured organized
receives the FMD
healthy economic society. No direct
of the property
standard. No direct benefit
taken. Direct
benefit.
benefit
6.
Nonimpairment of tax law do not impair
contracts Contracts may be Contracts may be contracts. Xpn:
impaired impaired government is party
to contract granting
exemption
7. Test of validity
Maintenance of the person receives Protection of a
healthy economic the FMD of the secured organized
standard. No direct property taken. society. No direct
benefit. Direct benefit
benefit
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1. Provisions directly affecting taxation:

a. Prohibition against imprisonment for non-payment of poll tax (Art. III, Sec. 20)
According to Article 3 Section 20 of the 1987 Constitution: “No person shall be imprisoned for debt
or non-payment of a poll tax.”

b. Uniformity and equality of taxation (Art. VI, Sec. 28)

Section 28 (c), Article VI of the Constitution provides that “the rule of taxation shall be uniform and
equitable.” The concept of uniformity in taxation implies that all taxable articles or properties of the same
class shall be taxed at the same rate.

c. Grant by Congress of authority to the president to impose tariff rates (Art. VI , Sec. 28)
The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive
system of taxation.

d. Prohibition against taxation of religious, charitable entities, and educational entities (Art. VI, Sec. 28)
Under Section 28, Article VI of the Constitution, charitable institutions, churches and parsonages or
convents appurtenant thereto, mosques, nonprofit cemeteries, and all lands, buildings, and improvements,
actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt
from tax

e. Prohibition against taxation of non-stock, non-profit educational institutions (Art. IX, Sec. 4)
all revenue and assets of nonstock nonprofit educational institutions used actually, directly and exclusively
for educational purposes are exempt from taxes and duties. As established clearly by jurisprudence (G.R.
Nos. 196596, 198841, and 198941), the tax exemption of revenue and assets of nonstock nonprofit
educational institutions hinges on whether these are used actually, directly and exclusively for educational
purposes.

f. Majority vote of Congress for grant of tax exemption (Art. VI, Sec. 28)
- No justice or judge of any court of record shall practice law during his continuance in office, nor shall he
hold any office in a political party or actively take part in any political campaign other than his own for his
reelection or retention in office.

g. Prohibition on use of tax levied for special purpose (Art. VI, Sec. 29)

h. President’s veto power on appropriation, revenue, tariff bills (Art. VI, Sec. 27)
Every bill passed by the Congress shall, before it becomes a law, be presented to the President. If
he approves the same, he shall sign it; otherwise, he shall veto it and return the same with his objections to
the House where it originated, which shall enter the objections at large in its Journal and proceed to
reconsider it. If, after such reconsideration, two-thirds of all the Members of such House shall agree to pass
the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be
reconsidered, and if approved by two-thirds of all the Members of that House, it shall become a law. In all
such cases, the votes of each House shall be determined by yeas or nays, and the names of the Members
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voting for or against shall be entered in its Journal. The President shall communicate his veto of any bill to
the House where it originated within thirty days after the date of receipt thereof; otherwise, it shall become a
law as if he had signed it.

i. Non-impairment of jurisdiction of the Supreme Court (Art. VI, Sec. 30)

j. Grant of power to the LGUs to create its own sources of revenue (Art. IX, Sec. 5)
Each local government unit shall have the power to create its own sources of revenues and to levy
taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent
with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local
governments.

k. Origin of Revenue and Tariff Bills (Art. VI, Sec. 24)

SECTION 24. All appropriation, revenue or tariff bills, bills authorizing increase of the public debt,
bills of local application, and private bills shall originate exclusively in the House of Representatives, but the
Senate may propose or concur with amendments.

l. No appropriation or use of public money for religious purposes (Art. VI, Sec. 28)
No public money or property shall be appropriated, applied, paid, or employed, directly or indirectly,
for the use, benefit, or support of any sect, church, denomination, sectarian institution, or system of religion,
or of any priest, preacher, minister, other religious teacher, or dignitary as such, except when such priest,
preacher, minister, or dignitary is assigned to the armed forces, or to any penal institution, or government
orphanage or leprosarium.

2. Provisions indirectly affecting taxation (Art. III, 1987 Constitution)

a. Due process (Sec. 1)
No person shall be deprived of life, liberty, or property without due process of law, nor shall any
person be denied the equal protection of the laws.

b. Equal protection (Sec. 1)

No person shall be deprived of life, liberty, or property without due process of law, nor shall any
person be denied the equal protection of the laws.

c. Religious freedom (Sec. 5)

No law shall be made respecting an establishment of religion, or prohibiting the free exercise
thereof. The free exercise and enjoyment of religious profession and worship, without discrimination or
preference, shall forever be allowed. No religious test shall be required for the exercise of civil or political
rights.

d. Non-impairment of obligations of contracts (Sec. 10)

No law impairing the obligation of contracts shall be passed.

e. Freedom of the press (Sec. 4)

No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right
of the people peaceably to assemble and petition the government for redress of grievances.