1. What are taxes?

Taxes are the enforced proportional contributions from properties and persons levied by the
State by virtue of its sovereignty for the support of the government and all public needs.

2. What are the essential characteristics of taxes?

ESSENTIAL CHARACTERISTICS OF TAXES
A. Enforced contribution – Not dependent upon the will or contractual assent of the person
taxed. Hence, whether the taxpayer likes it or not, he is compelled to pay taxes. It is a legal and
mandatory obligation.
B. Generally payable in money – Tax is a pecuniary burden payable in money.
Exceptions: 1. Tax credit certificate or backpay certificate – When taxes are paid in excess of that
due, the government issues a certificate where said excess in taxes will be deducted from the
taxes payable the following year.
2. Tax liens – Forfeiture of property by reason of failure to pay real property tax – but this
property will be sold and the proceeds shall be used to satisfy the tax obligation.
C. Proportionate in character – It is assessed in accordance with some reasonable rule of
apportionment which is usually based on the ability of the taxpayer to pay.
D. Levied on persons, property, exercise of a right or privilege, act or transactions – within the
taxing authority‘s jurisdiction in accordance with the principle of territoriality.
Ex. Persons – Cedula; Property – Real Property Tax; Exercise of a right or privilege – Income tax,
Donor‘s Tax
E. Levied by the State which has jurisdiction over the subject or object of taxation
F. Levied by the lawmaking body of the State – The power to tax is a legislative power but is also
granted to local governments, subject to such guidelines and limitations as law may provide.
G. Levied for public purpose – The public purpose of the imposition is implied in the levy of tax.
A tax levied for a private purpose constitutes taking of property without due process

3. Tax v License Fee - page 10

Tax v Toll Fee – page 10 of transcript, (pls copy it nalang gretz, tabular kasi nasa transcript, hehe)
Tax v Special Assessment – page 11
Tax v Debt – page 11
Tax v Subsidy – page 11

4. The inherent limitations are the following: [PENIT]

A. Public purpose
B. Exemption from taxation of government entities
C. Non-delegation of the legislative power to tax
D. International comity
E. Territorial jurisdiction

5. Direct constitutional limitations

A. Revenue bill must originate exclusively in the House of Representatives but the Senate
may propose or amendments
B. Concurrence of a majority of all the members of Congress for the passage of a law
granting tax exemption
C. Rule of uniformity and equity in taxation
D. Progressive system of taxation
E. Exemption of religious, charitable and educational entities, nonprofit cemeteries, and
churches from property taxation.
F. Exemption of non-stock, non-profit educational institutions from taxation
G. Non-imprisonment for non-payment of a poll tax
H. Non-impairment of the jurisdiction of the SC in tax cases
I. Prohibition on the use of special fund
J. Power of the President to veto any particular items in a revenue or tariff bill

INDIRECT CONSTITUTIONAL LIMITATIONS

A. Due process of law B. Equal protection of the laws C. Non-impairment of the obligations
of contracts D. Non-infringement of religious freedom E. No appropriation for religious
purposes F. Non-infringement of the freedom of the press