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1. Police Power
2. Power of Eminent Domain
3. Power of Taxation
They are inherent powers because they belong to the very
essence of
government and without them no government can exist.

Similarities, Distinctions, and Limitation
they are inherent in the State
they are necessary and indispensable
they are methods by which the State interferes with private
they presuppose an equivalent compensation
they are exercised primarily by the legislature


(a) Bill of Rights
(b) Constitution

Police Power is an inherent power of the State to promote
the welfare of society by restraining and regulating the use of
liberty and property.

Justification of existence:
Salus populi est suprema lex the welfare of the people is
the supreme law;
Sic utere tuo ut alienum non laedas a person must use his
own property so as not to injure another

(a) cannot be bargained away through the medium of a treaty or
(Stone v Mississippi)( Inchong vs. Hernandez)
(b) may use taxing power as its implement (Tio vs Videogram
(c) may use eminent domain as its implement (Assoc. of Small
vs Sec. of Agrarian Reform)
(d) could be given retroactive effect and may reasonably impair
vested rights or contracts (police power prevails over contract)
(e) dynamic, not static, and must move with the moving society
it is supposed to regulate

Who may exercise Police Power?
(a) the Legislature (inherent)
(b) President (by delegation)
(c) administrative boards (by delegation)
(d) lawmaking bodies on all municipal levels, including barangay
(by delegation)
(e) Municipal governments / LGU's (conferred by statute
general welfare clause of RA 7160)
Not being a political subdivision but merely an executive
authority it has no police power. (MMDA v. Bel-Air Village

Tests (Limitations):
(a) Lawful subject interests of the public generally, as
distinguished from those of a particular class, require the
exercise of police power
(b) Lawful means the means employed are reasonably
necessary for the accomplishment of the purpose and not unduly
oppressive upon individuals
Additional limitations (when exercised by delegate)
[Nachura Reviewer]:
express grant by law (e.g. RA 7160)
within territorial limits (for LGU's)
must not be contrary to law (City Government of Quezon City vs
for municipal ordinances -
1. must not contravene the Constitution or any statute
2. must not be unfair and oppressive
3. must not be partial and discriminatory
4. must not prohibit, but may regulate, trade
5. must not be unreasonable
6. must be general in application and consistent with public
In Ermita-Malate Hotel and Motel Operators Association,
Inc. v. Mayor of Manila, police power has been characterized
as the most essential, insistent and least limitable of powers
extending as it does to all great public needs.
[T}he mere fact that some individuals in the community may
be deprived of their business or a particular mode of earning a
living cannot prevent the exercise of police power. .. [P]ersons
licensed to pursue occupations which may in the public need and
interest be affected by the exercise of the police power embark
in these occupations subject to the disadvantages which may
result from the exercise of that power.
Government can take away a license and increase the cost of
license fees even to prohibitive levels, if public interest dictates
so, without any constitutional violations.
Licenses for regulating non-useful occupation are incidental to
the exercise of police power and the right to exact fees is may be
implied from that power to regulate. In setting the fees,
municipal corporations are given wider discretion in this class of
licenses (than for licenses issued to regular business). Courts
have generally upheld these because of the desirability of
imposing restraints on individuals who engage in these useless
In Ynot v. IAC, the Court here ruled that the ban on
transportation of
REPC Police power
Domain Taxation
as to
both liberty and
property rights
rights only
as to
who may
only the
and some
private entities
only the
as to the
destroyed because
it is noxious or
intended for
noxious purposes
taken for a
public use or
taken for a
public use or
As to
intangible altruistic
feeling that the
person has
contributed to the
general welfare
full and fair
equivalent of
the property
and public
ts for the
carabao under the assailed ordinance and their outright
confiscation and disposal without court hearing is a violation of
due process hence it is an invalid exercise of police power.
The court adopted the measures laid down in the Toribio case
Protection general welfare is a function of police power which
both restrains and is restrained by due process, which requires
notice and hearing
Case emphasized the need to have a lawful method to follow
due process requirement
Reasons why ordinance is invalid are:
No reasonable connection between means employed (absolute
ban on movement of carabeef) and purpose sought to be
achieved (conservation of carabao for general welfare)
Unduly oppressive since petition not given due process or
opportunity to be heard in proper court

Eminent Domain is the use of the government of its coercive
authority, upon just compensation, to forcibly acquire the
needed property in order to devote the same to public use.
Eminent domain is also known as expropriation, or

Who may Exercise?
1. The Congress (inherent)
2. President
3. various local legislative bodies
4. certain public corporations (e.g. National Housing Authority)
5. Quasi-public corporations (e.g. PLDT)

Eminent Domain Distinguished from Destruction from
Eminent Domain Destruction from Necessity
public right
arises from the laws of
society and is vested in
state or grantee, acting
under the right and
power of
the state or benefit of the
private right vested in every
individual with which the right of
state or state necessity has nothing
to do
comes under the right of
of self-preservation
arises under the laws of society or
society itself
cannot require the conversion of
property taken to public use, nor is
there any need for the payment of
just compensation

The Regional Trial Court (RTC) has the jurisdiction over a
complaint for eminent domain.
Requisites of Eminent Domain:
1. Necessity of exercise
2. Private property
3. Taking
4. Public use
5. Just compensation

1. Necessity of Exercise
genuine necessity, and
must be of public character
When exercised by legislature political question
When exercised by a delegate justiciable question
determine the: (a) adequacy of compensation; (b) necessity of
taking; and (c) public use character

2. Private Property
General Rule: anything that can come under the dominion of
man is subject to expropriation
Exceptions: money and chose in action (personal right not
reduced into
possession, but recoverable by a suit at law, a right to receive,
demand or recover a debt, damage on a cause of action ex
contractu or for a tort or omission of duty.
Private property already devoted to public use cannot be
expropriated by a delegate acting under a general grant of authority
(City of Manila vs Chinese Community)
Property already devoted to public use is still subject to
expropriation provided this is done directly by the national
legislature or under a specific grant of authority to the delegate.

3. Taking- may include trespass without actual eviction of the
owner, material impairment of the value of the property or
prevention of the ordinary uses for which the property was
Ex. Farmland inundated, government planes, prohibition of
residential bldg. to plaza

Requisites (Republic vs Castellvi):
(a) expropriator must enter a private property
(b) entry must be for more than a momentary period
(c) entry must be under the warrant or color of legal authority
(d) the property must be devoted for public use or otherwise
informally appropriated or injuriously affected.
(e) the owner is deprived of enjoying his property

if taking is under police power, it is not compensable

Police Power Eminent Domain
the prejudice suffered by the
individual property owner is
shared in common with the
rest of the community
the individual suffers more than
his aliquot part of the damages,
i.e. a special injury above that
sustained by the rest of the

In Amigable v. Cuenca, where there is taking in the
constitutional sense, the property owner need not file a claim for
just compensation with the Commission of Audit; he may go
directly to the court to demand payment.
Arbitrary action of the government shall be deemed a waiver of
its immunity from suit.
In City Government v. Ericta, an ordinance of Quezon City,
under the guise of exercising police power, prescribed that at
least 6% of the total area of memorial parks must be developed
and set aside for the burial of paupers. The Court held that such
ordinance is not an exercise of police power but the taking of
private property for public use. Hence, to satisfy the
Constitution, there must be compensation.

4. Public Use-
Public use is whatever may be beneficially employed for the
general welfare, including both direct or indirect benefit or
advantage to the public
In Heirs of Ardona v. Reyes, the Court held that the
Constitution understand public use in a broad sense as meaning
public welfare. That includes development of tourism.

5. Just Compensation
Just compensation is fair and full of the property taken from
the private owner by the expropriator to be paid within a
reasonable time.

To ascertain just compensation:
1. actual or basic value of the property
2. Where only part of the property is expropriated: there
should be added to the basic value the owners consequential
damages after deducting therefrom the consequential benefits
arising from the expropriation.
Payment of the correct amount + Payment within a reasonable

Forms of Compensation: Money (However, in Assoc. of Small
Landowners vs Sec. of Agrarian Reform, payment is allowed to be
made partly in bonds because it deals with a revolutionary kind
of expropriation).
Transfer of Title: payment of just compensation before title is
Reckoning point of market value of property: either as of
the date of taking or filing of the complaint, whichever comes
Entitlement of interest:
General Rule: when there is delay, there must be interest by
way of damages (Art. 2209, CC)
Exception: when waived by not claiming the interest
Payment of Taxes : taxes paid from the time of the taking
until the transfer of the title, during which the owner did not
enjoy any beneficial use of the property, are reimbursable by the
Right of the landowner in case of non-payment:
General Rule: landowner is not entitled to recover possession
of the property, but only to demand payment
Exception: when the government failed to pay just
compensation within 5 years from the finality of judgment in
expropriation proceedings, there is a right to recover property

Taxes-are enforced proportional contributions from persons
and property, levied by the State, by virtue of its sovereignty, for
the support of the government, and for all public needs
Power of Taxation is a method by which contributions are
exacted from persons and property for the support of
government and for all public needs.
Obligation to pay taxes is a duty
all income earned in the taxing state, whether by citizens or
aliens, and all immovable and tangible personal properties found
in its territory, as well as tangible personal property owned by
persons domiciled therein
Power to Tax Includes Power to Destroy
(1) when used validly as an implement of the police power in
discouraging and in effect ultimately prohibiting certain things or
enterprises inimical to public welfare
where the tax is used solely for the purpose of raising revenues
Who May Exercise
1. Legislature / Congress (inherent)
2. President (by delegation / tariff powers [Sec. 28 (2), Art. VI,
3. local legislative bodies (conferred by direct authority [Sec. 5,
Art. X,
Limitations of Taxation:
1. Due Process of Law
2. Equal Protection
3. Public Purpose

1. Due Process
Substantive : tax should not be confiscatory except when used
as an implement of police power
Procedural : due process does not require previous notice and
hearing before a law prescribing specific taxes on specific articles
may be enacted. However, where the tax to be collected is to be
based on the value of the taxable property, the taxpayer is
entitled to be notified of the assessment proceedings and to be
heard therein on the correct valuation of the property.
2. Equal Protection
embodied in Sec. 28 (1), Art. VI, 1987 Constitution (The rule
of taxation shall be uniform and equitable. The Congress shall
evolve a progressive system of taxation.)
Uniformity persons or things belonging to the same class
shall be taxed at the same rate
Requisites (Tan vs Del Rosario):
(a) standards that are used are substantial and not arbitrary
(b) categorization is germane to achieve the legislative purpose
(c) the law applies, all things being equal, to both present and
future conditions
(d) classification applies equally well to all those belonging to the
Equitable taxation based on the capacity to pay
Equality in taxation tax shall be strictly proportional to the
relative value of the property
Progressive system of taxation the rate increases as the tax
base increases
3. Public Purpose
whatever may be beneficially employed for the general welfare
Double Taxation / Direct Duplicate Taxation
when additional taxes are laid on the same subject by the same
taxing jurisdiction during the same taxing period and for the
same purpose.
despite the lack of specific prohibition, double taxation will not
be allowed if it results in a violation of the equal protection
Tax Exemptions may either be:
Art. Vi, Sec. 28 (3) : when lands, buildings and improvements
are actually, directly and exclusively for religious, charitable or
educational purposes entitled to exemption
statutory- discretion of legislature

Bill of Rights set of prescriptions setting forth the
fundamental civil and political rights of the individual, and
imposing limitations on the powers of the government as a
means of securing the enjoyment of those rights.
Significance of the Bill of Rights
Government is powerful. When unlimited, it becomes tyrannical.
The Bill of Rights is a guarantee that there are certain areas of a
person's life, liberty, and property which governmental power
may not touch.
Bill of Rights are generally self-implementing.
Classification of Rights
1. Political Rights granted by law to members of community
in relation to their direct or indirect participation in the
establishment or administration of the government;
2. Civil Rights rights which municipal law will enforce at the
instance of private individuals for the purpose of securing them
the enjoyment of their means of happiness;
3. Social and Economic Rights; and,
4. Human Rights.