3 Inherent Powers of the State:
1. Police Power;
2. Power of Eminent Domain or Power of Expropriation;
and
3. Power of Taxation
Purpose:
1. for public good or welfare - Police Power
2. For public use - Power of Eminent Domain
3. For revenue - Power of Taxation
1. POLICE POWER is the power of promoting the public welfare
by restraining and regulating the use of both liberty and property
of all the people. It is considered to be the most all-encompassing
of the three powers. It may be exercised 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.
It lies primarily in the discretion of the legislature. Hence, the
President, and administrative boards as well as the lawmaking
bodies on all municipal levels, including the barangay may not
exercise it without a valid delegation of legislative
power. Municipal governments exercise this power by virtue of
the general welfare clause of the Local Government Code of
1991. Even the courts cannot compel the exercise of this power
through mandamus or any judicial process.
Most pervasive of all, least limitable and most demanding among
the powers.
Requisites of a valid police measure:
(a.) Lawful Subject – the activity or property sought to be
regulated affects the public welfare. It requires the primacy of the
welfare of the many over the interests of the few.
(b.) Lawful Means – the means employed must be reasonable and
must conform to the safeguards guaranteed by the Bill of Rights.
(c.) Additional limitations when police power is exercised by a
virtue of valid delegation:
Express grant by law
Within the territorial limits of enacting body
Must not be contrary to law
The President
Law making bodies of the local government units
Administrative Bodies
2. POWER OF EMINENT DOMAIN affects only property RIGHTS. It
may be exercised by some private entities. The property forcibly
taken under this power, upon payment of just compensation, is
needed for conversion to public use or purpose.
The taking of property in law 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
intended.
The property that may be subject for appropriation shall not be
limited to private property. Public property may be expropriated
provided there is a SPECIFIC grant of authority to the delegate.
Money and a chose in action are the only things exempt from
expropriation.
Although it is also lodged primarily in the national legislature, the
courts have the power to inquire the legality of the right of
eminent domain and to determine whether or not there is a
genuine necessity therefore.
3. POWER OF TAXATION affects only property rights and may be
exercised only by the government. The property taken under this
power shall likewise be intended for a public use or purpose. It is
used solely for the purpose of raising revenues, to protect the
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people and extend them benefits in the form of public projects and
services (I hope so). Hence, it cannot be allowed to be confiscatory,
except if it is intended for destruction as an instrument of the
police power.
It must conform to the requirements of due process. Therefore,
taxpayers are entitled to be notified of the assessment proceedings
and to be heard therein on the correct valuation to be given the
property. It is also subject to the general requirements of the equal
protection clause that the rule of taxation shall be uniform and
equitable.
Police Power
It is defined as the power of the State of promoting public welfare
by restraining and regulating the use of liberty and property. In
other words, it is the power to promote general welfare and public
interest; to enact laws to promote public health, public morals and
public safety of the inhabitants of the State. It can be derived from
its definition that the power is based on public necessity and self-
preservation. Among the three powers, police power is
characterized as the most pervasive, the least limitable and the
most demanding. The justification is found in the age-old
maxims: salus populi est suprema lex (the welfare of the people is
supreme) and sic utere ut alienum non laedas (so you may use
your property not to injure the rights of others).
Police power is generally exercise by the legislature since it is the
main repository of State powers. The power, nonetheless, is
delegable to other entities such as the President, administrative
agencies and the law-making bodies of local governments.
There are two requisites for a valid exercise of police power. First,
the exercise thereof must have a lawful subject, i.e. the interest of
the public in general as distinguished from those of particular
class. Second, the exercise must through lawful means, i.e. the
means employed must be reasonably necessary for the
accomplishment of the purpose and it must not be unduly
oppressive to individuals and other affected entities.
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Eminent Domain
It is the power of the State to forcibly take private property for
public use upon payment of just compensation. Like police power,
it is based on the overriding public necessity and is exercisable by
the legislative department of the State. But unlike police power,
eminent domain may be exercised by private entities with the
express valid delegation from the legislature. It can likewise be
exercised by the President, administrative agencies and local
governments. The power is usually exercised through the formal
expropriation proceedings before a court which, when granted by
the latter, will result to the actual taking of the property from its
owners upon payment of just compensation. However, there are
instances when the power is deemed exercised without actual
taking of the property. This is possible in cases like, when through
a State action, there is practical destruction or material
impairment of the value of the property or when the owner is
deprived of the ordinary use of his property. Also, there is implied
exercise of the power when the owner is deprived of the
jurisdiction, supervision and control of his property.
Taxation
It is the power by which the State exacts enforced proportional
contribution from the people, property and exercise of a right
within its territory to raise revenue for the purpose of defraying
the necessary expenses of the government. The main theory
supporting the exercise of the power is the so-called "lifeblood
theory". The theory states that taxes are the lifeblood of the nation.
Without the revenue raised from taxation, the government will not
survive resulting to the detriment of the society. Without taxes, the
government would be paralyzed for lack of motive power to
activate and operate it. Another theory is the benefits-received
theory which states that tax are imposed because of the reciprocal
duties of protection and support between the State and the
taxpayer. The taxpayer is liable to pay tax because of the
protection it receives from the State. Like the other powers, it is
can be delegated by the legislature to the President and local
governments. But taxation cannot be delegated to administrative
agencies although the administration of taxation can be delegated
to them. Taxation powers of the State, for all its awesome
pervasiveness, is still saddled with inherent and as well as
constitutional limitations. Example of inherent limitation is that
taxation can be exercised only for public purpose. On the other
hand, example of constitutional limitation is that the exercise of
taxation powers must not violate due process and equal protection
clause of the Constitution.
Similarities:
The three inherent of the state are similar in the following
respects:
1. They are inherent in the state and may be exercise by it
without need of express constitutional grant.
2. They are not only necessary but indispensable. The state
cannot continue or effective unless it is able to exercise them.
3. They are methods by which the state interferes with
private rights.
4. They all presuppose an equivalent compensation for the
private rights interfered with.
5. They are exercise merely by legislature.
Differences:
The three inherent powers of the state differ from each other in
the following ways:
1. The police power regulates both liberty and property.
The power of eminent domain and the power of taxation
affect only property rights.
2. The police power and power of taxation maybe exercise
only by the government. The power of eminent domain
maybe exercises by private entities.
3. The property taken in the police power is destroyed
because it is noxious or intended for noxious purpose. The
property taken under the power of eminent domain and the
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power of taxation is intended for a public use or purpose and
is therefore wholesome.
4. The compensation of the person subjected to the police
power is the intangible altruistic feeling that he has
contributed to the several welfare. The compensation
involved in the other powers is more concrete, to wit, a full
and fair equivalent to the property expropriated or
protection and the public improvement for the taxes paid.
Limitations:
Although inherent and indispensable, the fundamental powers of
the state are not without restrictions-as ours is a government of
limited powers, even these prerogatives may not be exercise
arbitrarily, to the prejudice of the bills of rights. The presumption
in libertarian societies is in favor of private rights and against
attempt on the part of the state to interfere with them,
"Constitutional provision for the security of persons and property
should be liberally construed." Hence, the exercise of these
fundamental powers is subject at all times to the limitation and
requirements of the constitution and may in proper cases be
annulled by the courts of justice.
Police power is exercised to safeguard the public from economic
sabotage during critical times.
For example, stores found overpricing maybe ordered padlocked
or fined.
Who may exercised Police Power?
Legislative (lawmaking body)
Executive branch
Local executives (as defined by law)
Eminent domain enables the state to acquire private property
upon payment of just compensation for some intended public use.
Also called the power of expropriation, eminent domain is
described as the “highest and most exact idea of property
remaining in the government” that may be acquired for some
public purpose through a method “in the nature of a compulsory
sale to the state.”
Requisites for Valid exercise of power of Eminent Domain
The property taken must be intended for public use or public
purpose.
Payment of just compensation
Due process of law must be observed
Note: 1. Exercise must meet the element of necessity
2. Property must be a private property.
Who may exercise the power of expropriation?
The Congress
The President
The various local legislative bodies
Certain public corporations: Land Authority, MWSS
Quasi-public corporations: PLDT, Meralco
Taxation. The state is able to demand from the members of society
their proportionate share or contribution in the maintenance of
the government.
Non-payment of tax may be subject to criminal prosecution and
punishment.
SIMILARITIES OF THE POWERS OF THE STATE

They are inherent in the state and may be exercised
without need of express constitutional grant.
 welfare. The compensation involved in the other powers is more
They are not only necessary but indispensible.
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
They are methods by the state by which the State interferes
with private rights.

They all presuppose an equivalent compensation for the
private rights interfered with.

They are exercised primarily by the legislature.
Features of taxation
It is compulsory
It is proportionate to one’s ability to pay
It is payable in money
Taxes are imposed by the sate
The Three Inherent Powers of the State Compared
SIMILARITIES OF THE POWERS OF THE STATE
The police power regulates both liberty and property. The power
of eminent domain and the power of taxation affect only property
rights.
Only the government may exercise the police power and the
power of taxation. The power of eminent domain may be exercised
by some private entities.
The property taken in the exercise of the police power is
destroyed because it is noxious or intended for noxious purpose.
The property taken under the power of eminent domain and
taxation is intended for public use and is therefore wholesome.
The compensation of the person subject to the police power is the
intangible altruistic feeling that he has contributed to the general
concrete, to wit, a full and fair equivalent of the property
expropriated or protection and public improvements for the taxes
paid

Characteristics:
Police Power cannot be bargained away through the medium of a
treaty or a contract.
Eminent Domain Requisites:
1. There must be a necessity for the taking of the private
property.
 When legislature decides on the necessity of the taking, it is
a political question, whereas when it is exercised by a
delegated party the question of the necessity of taking is a
justiciable question.
 What is being taken is private property to be used for
public purpose. Thus the property taken cannot be used for
private purpose, nor can private property be taken when it
is already being used for public purpose.
 Any private property capable of ownership may be taken
with the exception of money and chases in action. Services
may be the subject of the power of eminent domain.
 The private property taken should be for public use. The
meaning of public use is not confined to the actual use by
the public in its traditional sense. It has been broadened to
include uses which while not directly available to the public
redound to their indirect advantage or benefit.
2. Just compensation must be paid for the private property
taken.
 It is the court which decides what constitute just
compensation.
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 Compensation must be paid in money though in the case of
agrarian reform program compensation is partially paid in
bonds.
 Compensation is determined as of the date of the filing of
the complaint for eminent domain in general.
 The owner is entitled to the payment of interest if claimed.
If unclaimed, interest is waived.
 Title does not pass to the government until payment has
been made.
3. Due process of law must be observed in the process of
expropriation.
Taxation:
Inherent Limitations:
 Taxes can be levied for public purpose only
 Non-delegability to private persons of the exercise of
the power
 Territoriality or situs of taxation taxes can be imposed
only within the territory of the taxing state.
 Exemption of government from taxation.
 Due to International Comity ne state cannot tax
another sovereign state.
Constitutional Limitations:
 Due process of law must be observed i.e. the tax must not
be confiscatory
 Equal protection of law must be observed in such a way
that the tax must be uniform and equitable.
 Taxes must be progressive.
 Taxes should not impair contracts.
 They should not violate the rule on the non-imprisonment
for nonpayment of poll tax
 Tax should not infringe on religious freedom
 Tax measures should originate from the House of
Representatives.