Chapter 1 – General Principles of Taxation

Limitations on the power of taxation

1. Constitutional Limitations – Those restrictions found in the constitution or
implied from its provisions.
a. Due Process
b. Equal Protection of the laws
c. Rule of uniformity and equity in taxation
d. Non-imprisonment for non-payment of poll tax
e. Non-impairment of the obligations of contracts
f. Non-infringement of religious freedom
g. No appropriation for religious purposes
h. Exemption of religious, charitable or educational entities, non-profit
cemeteries, and churches from taxation
i. Exemption of revenues and assets of non-stock, non-profit
educational institutions and donations for educational purposes from
taxation
j. Non-impairment of the jurisdictions of the Supreme Court in tax
cases
2. Inherent Limitations – Those which restrict the power although they are not
embodied in the constitution.
a. Requirement that levy must be for a public purpose
b. Non-delegation of the legislative power to tax
c. Exemption from taxation of government entities
d. International comity
e. Territorial jurisdictions
Aspects of taxation
1. Levy – Deals with the provisions of law which determines the person or
property to be taxed, the sum or sums to be raised, the rate thereof, and the time
and manner of levying, receiving and collecting the taxes.
2. Collection – Constituted of the provisions of law which prescribe the manner of
enforcing the obligation on the part of those taxed to pay the demand thus
created.