1.

THE POWER OF TAXATION PROCEEDS UPON

THE THEORY THAT THE EXISTENCE OF
GOVERNMENT IS A NECESSITY

2. THE BASIS OF TAXATION IS FOUND IN THE

RECIPROCAL DUTIES OF PROTECTION AND
SUPPORT BETWEEN THE STATE AND ITS
INHABITANTS. IN RETURN FOR HIS
CONTRIBUTION, THE TAX PAYER RECEIVES THE
GENERAL ADVANTAGES AND PROTECTION
WHICH THE GOVERNMENT AFFORDS THE TAX
PAY THE TAX PAYER AND HIS PROPERTY. THIS
IS THE SO-CALLED BENEFITS RECEIVED
PRINCIPLE.
THE FORGOING STATEMENTS, HOWEVER, MUST
BE QUALIFIED

a. IT DOES NOT MEAN THAT ONLY THOSE WHO

ARE ABLE TO AND DO PAY TAXES CAN ENJOY
THE PRIVILEGES AND PROTECTION GIVEN TO
A CITIZEN BY THE GOVERNMENT.
b. FROM THE CONTRIBUTION RECEIVED, THE
GOVERNMENT RENDERS NO SPECIAL OR
COMMENSURATE BENEFITS TO ANY
PARTICULAR PROPERTY OR PERSON.
c. THE ONLY BENEFIT TO WHICH THE TAX PAYER
IS ENTITLED IS THAT DERIVED FROM HIS
ENJOYMENT OF THE PRIVILEGES OF LIVING IN
AN ORGANIZED SOCIETY ESTABLISHED AND
SAFEGUARDED BY THE DEVOTION OF TAXES
OF PUBLIC PURPOSES.
NATURE OF THE POWER
OF TAXATION
1. IT IS INHERENT IN SOVEREIGNTY. THE
POWER OF TAXATION IS INHERENT IN
SOVEREIGNTY AS AN INCIDENT OR
ATTRIBUTE THEREOF, BEING ESSENTIAL TO
THE EXISTENCE OF EVERY GOVERNMENT.
(a) CONSTITUTIONAL PROVISION RELATING TO
THE POWER OF TAXATION DO NOT OPERATE
AS GRANTS OF POWER TO THE
GOVERNMENT.
(b) WHILE THE POWER TO TAX IS NOT
EXPRESSLY PROVIDED FOR IN OUR
CONSTITUTION, IT EXISTENCE IS
RECOGNIZED BY THE PROVISIONS RELATING
TO TAXATION.
2. IT IS LEGISLATIVE IN CHARACTER. THE
POWER OF TAX IS PECULIARLY AND
EXCLUSIVELY LEGISLATIVE AND CANNOT BE
EXERCISED BY THE EXECUTIVE OR JUDICIAL
BRANCH OF THE GOVERNMENT.
3. IT IS SUBJECT TO CONSTITUTIONAL AND
INHERENT LIMITATIONS. THE POWER OF
TAXATION IS SUBJECT TO CERTAIN
LIMITATIONS.
ASPECTS OF TAXATION
 1. LEVYING OR IMPOSITION OF THE TAX WHICH
IS A LEGISLATIVE ACT.

2. COLLECTION OF THE TAX LEVIED WHICH IS

ESSENTIALLY ADMINISTRATIVE IN CHARACTER.
 EXTENT OF THE
LEGISLATIVE POWER TO
TAX
 1. THE SUBJECTS OR OBJECTS TO BE TAXED.
THESE REFER TO COVERAGE AND THE KIND
OR NATURE OF TAX.
2. THE PURPOSE OR OBJECT OF THE TAX SO
LONG AS IT IS A PUBLIC PURPOSE. THE
LEGISLATIVE BODY CAN LEVY A TAX OR MAKE
AN APPROPRIATION PROVIDED IT IS FOR A
PUBLIC PURPOSE.
JUDICIAL ACTION IS LIMITED ONLY TO A
REVIEW WHERE IT INVOLVES:
(a) THE DETERMINATION OF THE VALIDITY OF
THE TAX IN RELATION TO CONSTITUTIONAL
PRECEPTS OR PROVISIONS.
(b) THE DETERMINATION IN AN APPROPRIATE
CASE OF THE APPLICATIONS OF TAX LAW.
 3. THE AMOUNT OR RATE OF THE TAX. AS A
GENERAL RULE, THE LEGISLATURE MAY LEVY A
TAX OF ANY AMOUNT OR RATE IT SEES FIT.

4. THE MANNER, MEANS, AND AGENCIES OF

COLLECTION OF THE TAX. THESE REFER TO THE
ADMINISTRATION OF TAX OR THE
IMPLEMENTATION OF TAX LAWS.
 NON-REVENUE
OBJECTIVES OF TAX