THE THREE INHERENT

POWER OF THE
STATES
Fundamental Principles of Taxation
 THREE INHERENT POWERS OF THE
STATE
1. Police Power – it the power of the state for promoting public
welfare by restraining and regulating the use of liberty and
property. It may be exercise only by the government. The
property taken in the exercise of this power is destroyed because
it is noxious or intended for a noxious purpose.

2. Power of Taxation – it is the power by which the state raises

revenue to defray the necessary expenses of the government.

3. Power of Eminent Domain – it is the power of the state to

acquire private property for public purpose upon payment of just
compensation.
 SIMILARITIES OF THE THREE INHERENT
POWERS OF THE STATE
1. They are inherent in the State.
2. They exist independently of the constitution although the
conditions for their exercise may be prescribed by the
constitution.
3. Ways by which the State interfere with private rights and
property.
4. Legislative in nature and character.
5. Presuppose an equivalent compensation received, directly
or indirectly by the persons affected.
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
1. As to Nature:
▪ Taxation – Power to enforce contributions to raise
government funds
▪ Police Power – Power to make and implement laws
for the general welfare
▪ Eminent Domain – Power to take private property for
public use with just compensation
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
2. As to Authority:
▪ Taxation – Government only
▪ Police Power – Government only
▪ Eminent Domain – Maybe granted to public
service/utility companies
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
3. As to Purpose:
▪ Taxation – For the support of the government
▪ Police Power – Promotion of general welfare through
regulation
▪ Eminent Domain – The taking of private property for
public use
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
4. As to Persons affected:
▪ Taxation – Community or a class of individuals; applies
to all persons, property and excises that may be subject
thereto
▪ Police Power – Community or a class of individuals;
applies to all persons, property and excises that may be
subject thereto
▪ Eminent Domain – On the individual as the owner of
the personal property; only particular property is
comprehended
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
5. As to Scope:
▪ Taxation – Plenary, comprehensive, supreme
▪ Police Power – Broader in application, general power to
make and implement law
▪ Eminent Domain – Merely a power to take private
property for public use
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
5. As to Effect:
▪ Taxation – Contribution become part of public fund
▪ Police Power – No transfer of title. There may be a
restraint on the injurious use of property
▪ Eminent Domain – There is a transfer of title to property
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
6. Benefits Received:
▪ Taxation – In form of protection and benefits received
from government
▪ Police Power – No direct and immediate benefit but only
such as may arise from the maintenance of healthy
economic standard of society
▪ Eminent Domain – Market value of the property taken
 DISTINCTIONS AMONG THE THREE
INHERENT POWER OF THE STATES
7. Amount of Imposition:
▪ Taxation – No limit
▪ Police Power – Sufficient to cover cost of the license and
the necessary expenses of police surveillance and
regulation
▪ Eminent Domain – No imposition. The owner is paid
equivalent to the fair value of his property