LAW COMPILATION

By: Atty. Sui Generis

THREE INHERENT POWER OF THE STATE (Part 1)

POLICE POWER
The power of promoting public welfare by restraining and regulating the use of liberty and
property. With the latin maxim “salus populi est suprema lex” which means that “The welfare of the
people be the supreme law.”
The characteristics of Police power which provide in the case of Ermita-Malate Hotel and Motel
Operators Association Inc. v. Mayor of Manila, L-24693, July 31,1967, the most essential, insistent
and the least limitable of powers, extending as it does to all the great public needs. Negatively, it has
been defined as "that inherent and plenary power in the State which enables it to prohibit all that is
hurtful to the comfort, safely, and welfare of society’’.
Who may exercise?
The power is inherently vested in the Legislature. However, Congress may validly delegate this
power to the President, to administrative bodies and to lawmaking bodies of local government
units. Local Government units exercise the power under the general welfare clause, section 16 of
R.A. 7160 or Local Government Code of 1991.
Tests for a Valid Exercise of the Police Power:
1. Lawful Subject - the interests of the public generally, as distinguished from those of a particular
class, require the exercise of the police power, and
2. Lawful Means - the means employed are reasonably necessary for the accomplishment of the
purpose and not unduly oppressive upon the individual.

THREE INHERENT POWER OF THE STATE (Part 2)

POWER OF EMINENT DOMAIN

Section 9, Article III of the 1987 Constitution provides that the private property shall not be taken
for public use without just compensation. However, this provision is a limitation of the power of
eminent domain.

In addition, section 18, Article XII of the 1987 Constitution that the State may, in the interest of
national welfare or defense, establish and operate vital industries and, upon payment of just
compensation, transfer to public ownership utilities and other private enterprises to be operated
by the Government.

In the case of Republic of the Philippines v. Mupas, the Supreme Court defined the Eminent domain
as a fundamental state power that is inseparable from sovereignty. It is the power of a sovereign
state to appropriate private within its territorial sovereignty to promote public welfare. The
exercise of this power is based on the State’s primary duty to serve the common need and advance
the general welfare.

Who may exercise?

The power of eminent domain is lodges primarily in the national legislature, but may be validly
delegated to other governmental entities and, in fact, even to private enterprises performing public
services. Furthermore, local Government units may exercise the power under section 19 of R.A.
7160 or Local Government Code of 1991.
Requisites before the government may exercise such power:
1. Taking for a particular public purpose.
2. That just compensation be paid to the property owner.

THREE INHERENT POWER OF THE STATE (Part 3)

POWER OF TAXATION
The power of tax is an incident of sovereignty and is unlimited in its range, acknowledging in its
very nature no limits, so that so that security against its abuse is to be found only in the
responsibility of the legislature which imposes the tax on the constituency who is to pay it.
LIFEBLOOD OF THE GOVERNMENT
The life blood theory constitutes the theory of taxation, which provides that the existence of
government is a necessity; that government cannot continue without means to pay its expenses;
and that for these means it has a right to compel its citizens and property within its limits to
contribute.
In the case of Commissioner v. Algue, the Supreme Court said that taxes are the lifeblood of the
government and should be collected without unnecessary hindrance. They are what we pay for a
civilized society. Without taxes, the government would be paralyzed for lack of motive power to
activate and operate it.
PUBLIC PURPOSE
The power of taxation is the power to levy taxes to be used for public purpose. 
In the case of Planter Products v. Fertiphil Corporation, the court said “an inherent limitation on the
power of taxation is public purpose. Taxes are exacted only for a public purpose. They cannot be
used for purely private purposes or for the exclusive benefit of private persons. The reason for this
is simple. The power to tax exists for the general welfare; hence, implicit in its power is the
limitation that it should be used only for a public purpose”.
WHO MAY EXERCISE?

Primarily vested in the national legislature, it may now be exercises by local legislative bodies. Per
Section 5, Article X of the 1987 Constitution, "the power to tax is no longer vested exclusively on
Congress; local legislative bodies are now given direct authority to levy taxes, fees and other
charges." Nevertheless, such authority is "subject to such guidelines and limitations as the Congress
may provide."

In conformity with Section 3, Article X of the 1987 Constitution, Congress enacted Republic Act No.
7160, otherwise known as the local Government Code of 1991. Book II of the Local Government
Code governs local taxation and fiscal matters.

TAX EXEMPTIONS
Please read the following provision of the 1987 Constitution:
1. Section 28 (3) of Article VI – this tax exemption covers only real estate taxes.
2. Section 28 (4) of Article VI
3. Section 4 (3) Article XIV
4. Section 4 (4) Article XIV
Note: In the construction of tax statutes, exemptions are not favored and are construed strictissimi
juris against the taxpayer.