Inherent powers of the State: PET
- Police power – the power of the State to enact laws in relation to persons and property so as to promote public health, public moral, public safety and general welfare of the people.
- Power of eminent domain – the power of the State or those to whom the power has been delegated to take private property for public use upon paying the owner a just compensation to be ascertained according to law.
- Power of taxation – the power of the State by which the sovereign raises revenue to defray the necessary expenses of the government.
Similarities among the three inherent powers of the State: I-CLIC
- They are inherent in the State.
- They exist independently of the Constitution.
- They are legislative in nature and character.
- They constitute the three methods by which the State interferes with private rights and property.
- Each presupposes an equivalent compensation.
Distinction among the three inherent powers of the State: BICE PAPA
As to benefits received:
- Police power – no direct and immediate benefit, only such as may arise from the maintenance of a healthy economic standard of society
- Power of eminent domain – market value of the property taken from the property owner
- Taxation – equivalent of tax in the form of protection and benefit.
As to amount of imposition:
- Police power – limited to the cost of the license and the necessary expenses of police surveillance and regulation
- Power of eminent domain – no imposition, the owner is paid the fair market value of his property
- Taxation – no limit.
As to relationship to the non-impairment of obligations clause of the Constitution:
- Police power – superior to the clause
- Power of eminent domain – inferior to the clause
- Taxation – inferior to the clause
As to effect:
- Police power – no transfer of title, there is restraint on the injurious use of property
- Power of eminent domain – there is transfer of the right to property, either ownership or a lesser right
- Taxation – taxes become part of public funds
As to purpose:
- Police power – promote general welfare
- Power of eminent domain – public purpose
- Taxation – support of government
As to authority which exercises the power:
- Police power – government only
- Power of eminent domain – government, public service companies and public utilities
- Taxation – government only.
As to persons affected:
- Police power – community or class of individuals
- Power of eminent domain – individual, as owner of a particular property
- Taxation – community or class of individuals
JONATHAN RUIZ CPA, MIB