212014280 Fundamental Powers of the State Reviewer

August 30, 2017 | Author: Nash Dela Cruz | Category: Eminent Domain, Tax Exemption, Taxes, Property, Common Law
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FUNDAMENTAL POWERS OF THE STATE Inherent Powers of the State:

I . Police Power 

Law of overruling necessity - power promoting public welfare by restraining and regulating the use of liberty and property.

Basis: public necessity and right of State and of public to self-protection and self-preservation. Who may exercise: generally, the legislature but also:  the President,  Administrative bodies, and  Law-making bodies of LGU’s Requisites (Limitations): Lawful Subject – the interests of the public in general, as distinguished from those of a particular class, require the exercise of the power; Lawful Means – the means employed are reasonably necessary for the accomplishment of the purpose, and not unduly oppressive on individuals; When exercised by a delegate: express grant by law; within territorial limits – for LGUs except when exercised to protect water supply; and must not be contrary to law.

II . Power of Eminent Domain 

power of State to forcibly take private property for public use upon payment of just compensation

Basis: necessity of the property for public use. Who may exercise: generally, the legislature but also: the President; Law-making bodies of LGU’s; Public Corporations, and; Quasi-public Corporations. Two stages:  determination of the authority of the plaintiff to exercise the power and the propriety of its exercise; and  determination of just compensation. Requisites: 1. Necessity – when exercised by: Congress – political question; Delegate – justiciable question 2. Private property – all private property capable of ownership may be expropriated, except money and choses in action; may include services (Republic v. PLDT, 26 SCRA 620). 3. Taking: there is taking when: i. owner actually deprived or dispossessed of his property; ii. there is practical destruction or a material impairment of value of property; iii. owner is deprived of ordinary use of his property; and iv. owner is deprived of jurisdiction, supervision and control of his property. requisites: i. expropriator must enter a private property; ii. entry must be more than a momentary period; iii. entry must be under a warrant or color of authority; iv. property must be devoted to public use or otherwise informally appropriated or injuriously affected; v. utilization of the property must be in such a way as to oust the owner and deprive him of beneficial enjoyment of the property (Republic v. Castelvi, 58 SCRA 336). 4. Public use - has been broadened to include not only uses directly available to the public but also those which redound to their indirect benefit; that only a few would actually benefit from the expropriation of the property foes not necessarily diminish the essence and character of public use (Manosca v. Court of Appeals, 252 SCRA 412).  Once expropriated change of public use is of no moment. It is well within the rights of the condemnor as owner to alter and decide its use so long as it still for public use. (Republic vs. C.A., G.R. No. 146587, July 2, 2002) 5. Just compensation - compensation is qualified by the word just to convey that equivalent must be real, substantial, full and fair; the value of the property must be determined either as of the date of the taking of the property or the filing of the complaint, whichever came first. (Eslaban v. vda. De Onorio, G.R. No. 146062, June 28, 2001)  Formula: -- fair market value of the property, to which must be added the consequential damages, minus the consequential benefits, but in no case will the consequential benefits exceed the consequential damages Fair market value – the price that maybe agreed upon by parties who are willing but are not compelled to enter into a contract of sale.

 Consequential damages – consist of injuries directly caused on the residue of the private

property taken by reason of expropriation 6. Due process of law – the defendant must be given an opportunity to be heard.

III. Power of Taxation 

power by which State raises revenue to defray necessary expenses of the Government.

Scope: covers persons, property, or occupation to be taxed within taxing jurisdiction Basis: power emanating from necessity (lifeblood theory) Who may exercise: generally, the legislature but also: Law-making bodies of LGU’s (Sec.5, Art. X); and The President, under Sec. 28 (2), Art. VI of the Constitution or as incident of emergency powers that Congress may grant to him under Sec. 23(2), Art. VI. Limitations on the Power of Taxation: Inherent limitations Public purpose; a. Non-delegability of power; b. Territoriality or situs of taxation; c. Exemption of government from taxation; d. International comity. Constitutional limitations a. Due process of law; b. Equal protection of law; c. Uniformity, equitability, and progressivity of taxation; d. Non-impairment of contracts; e. Non-imprisonment for non-payment of poll tax; f. Origin of appropriation, revenue, and tariff bills; g. Non-infringement of religious freedom; h. Delegation of legislative authority to the President to fix tariff rates, import and export quotas, tonnage and wharfage dues; i. Tax exemption of properties actually, directly and exclusively used for religious, charitable and educational purposes; j. Majority vote of all members of Congress required in case of legislative grant of tax exemptions; k. Non-impairment of the Supreme Court’s jurisdiction in tax cases; l. Tax exemption of revenues and assets of, including grants, endowments, donations, or contributions to, educational institutions. 

Any question regarding the constitutionality of a tax measure must be resolved in favor of its validity.



Any doubt regarding the taxability of any person under a valid law must be resolved in favor of that person and against the taxing power.



Any doubt as to the applicability of a tax exemption granted to a person must be resolved against the exemption.

Double Taxation – additional taxes are laid: 1. on the same subject; 2. by the same taxing jurisdiction; during the same taxing period; and 3. for the same purpose.  Despite lack of specific constitutional prohibition, double taxation will not be allowed if the same will result in a violation of the equal protection clause (Nachura, Reviewer in Political Law, p.38).

TAX

LICENSE FEE 1. as to basis

Power of taxation – to raise revenue

Police power – to regulate 2. limitation

Rate or amount to be collected unlimited provided not confiscatory.

Amount limited to cost of: (a) issuing the license and (b) necessary inspection or police surveillance. 3. object

Imposed on persons or property.

Paid for privilege of doing something but privilege is revocable. 4. effect of non-payment

Business or activity does not become illegal.

Business becomes illegal.

POLICE POWER

EMINENT DOMAIN

TAXATION

1.

Regulates both liberty and property

Affects only property rights

Affects only property rights

2.

Exercised only by the Government

Maybe exercised by private entities

Exercised only by the Government

3. Public necessity and the right of the state and of the public to self-preservation and self-protection.

Necessity of the public for the use of private property

Public necessity

4. Property intended for a noxious purpose is taken and destroyed.

Property is wholesome and is devoted to public use or purpose

Property is wholesome and is devoted to public use or purpose

5. Compensation is the intangible, altruistic feeling that the individual has contributed to the public good

Compensation is full and fair equivalent of the property taken

Compensation is the protection and public improvements instituted by the government for the taxes paid

6.

Contracts may be impaired.

Contracts may not be impaired.

Contracts may be impaired.

DISTINCTION

POLICE POWER

EMINENT DOMAIN

1.

Lawful subject

1.

Necessity

2.

Lawful means

2.

Private property;

When exercised by a delegate:

3.

3.

Express grant by law

4.

Taking; . Public use;

4.

Within the territorial limits

5.

Just compensation;

5.

Must not be contrary to law

6.

Due process of law.

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