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    Taxation Taxes - Enforced Proportional Contributions From

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    Pat
    Taxes are levied by the state to raise revenues for government support and public needs. The power to tax is primarily vested in the national legislature and includes determining the tax rate, who or what to tax, and the purpose of taxation. Taxation must be uniform, equitable, and comply with due process and equal protection requirements. Certain entities like charitable institutions are constitutionally exempt from taxation, while other exemptions require congressional approval. Double taxation is allowed unless it violates equal protection. The tax proceeds must be used for a public purpose.

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    Taxation Taxes - Enforced Proportional Contributions From

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    Pat
    30 views2 pages
    Taxes are levied by the state to raise revenues for government support and public needs. The power to tax is primarily vested in the national legislature and includes determining the tax rate, who or what to tax, and the purpose of taxation. Taxation must be uniform, equitable, and comply with due process and equal protection requirements. Certain entities like charitable institutions are constitutionally exempt from taxation, while other exemptions require congressional approval. Double taxation is allowed unless it violates equal protection. The tax proceeds must be used for a public purpose.

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    Inherent Power of the State

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    Taxation Notes

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    Taxes are levied by the state to raise revenues for government support and public needs. The power to tax is primarily vested in the national legislature and includes determining the tax rate, who or what to tax, and the purpose of taxation. Taxation must be uniform, equitable, and comply with due process and equal protection requirements. Certain entities like charitable institutions are constitutionally exempt from taxation, while other exemptions require congressional approval. Double taxation is allowed unless it violates equal protection. The tax proceeds must be used for a public purpose.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    Taxation Taxes - Enforced Proportional Contributions From

    Uploaded by

    Pat
    Taxes are levied by the state to raise revenues for government support and public needs. The power to tax is primarily vested in the national legislature and includes determining the tax rate, who or what to tax, and the purpose of taxation. Taxation must be uniform, equitable, and comply with due process and equal protection requirements. Certain entities like charitable institutions are constitutionally exempt from taxation, while other exemptions require congressional approval. Double taxation is allowed unless it violates equal protection. The tax proceeds must be used for a public purpose.

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    TAXATION

    **discretion is not unlimited – may be reversed in


    Taxes – enforced proportional contributions from proper cases if it violates the due process and equal
    persons and property, levied by the State by virtue of protection clauses
    its sovereignty, for the support of government and for **it is subject to the requirements of due process
    all public needs (Cooley) **Constitutional Limitations – Art. VI, §28:
    -levied to raise revenues 1. The rule of taxation shall be uniform and equitable.
    -scope: pervasive The Congress shall evolve a progressive system of
    taxation.
    Taxation – method by which these contributions are 2. The Congress may, by law, authorize the President
    exacted to fix within specified limits, and subject to such
    limitations and restrictions as it may impose, tariff
    The importance of taxation derives from the rates, import and export quotas, tonnage and
    unavoidable obligation of the government to protect wharfage dues, and other duties or imposts within
    the people and extend them benefits in the form of the framework of the national development program
    public projects and services. of the Government.
    3. Charitable institutions, churches and personages or
    Obligation to pay taxes – not based on contract convents appurtenant thereto, mosques, non-profit
    -duty imposed upon the individual by the mere fact of cemeteries, and all lands, buildings, and
    his membership in the body politic and his enjoyment improvements, actually, directly, and exclusively
    of the benefits available from such membership used for religious, charitable, or educational purposes
    *non-payment of a tax may be the subject of criminal shall be exempt from taxation.
    prosecution and punishment (except poll tax) 4. No law granting any tax exemption shall be passed
    Art. III, §20 without the concurrence of a majority of all the
    No person shall be imprisoned for debt or non- Members of the Congress.
    payment of a poll tax.
    >taxes are not considered as debts DUE PROCESS
    *if the law provides for the fixed and specific taxes on
    vs Licenses – imposed for regulatory purposes certain articles – previous notice and hearing is not
    -justified under the police power required
    *if the tax to be collected is based on the taxable
    The power to tax may include the power to destroy if value of the property – notice and hearing is required
    it is used validly as an implementation of the police so as not to prejudice the taxpayer
    power in discouraging and in effect ultimately
    prohibiting certain things or enterprise inimical to EQUAL PROTECTION
    public welfare Taxation is subject to the general requirements of the
    equal protection clause
    If the power to tax is used solely for the purpose of
    raising revenues, the modern view is that it cannot be Art. 26, §28 (1)
    allowed to confiscate or destroy The rule of taxation shall be uniform and equitable
    **confiscation or destruction – serves as instrument
    of police power Equitable taxation connotes that taxes should be
    apportioned among the people according to their
    Exercise: primarily vested in the national legislature capacity to pay
    (amount, to tax or not to tax, whom or what to tax,
    purpose of taxing) De Villata vs Stanley
    -may also be exercised by the local legislative bodies Uniformity – persons or things belonging to the same
    Art. 10, §5 class shall be taxed at the same rate
    Each local government unit shall have the power to Equality – tax shall be strictly proportional to the
    create its own sources of revenues and to levy taxes, relative value of the property
    fees and charges subject to such guidelines and *these rules require a valid classification in the
    limitations as the Congress may provide, consistent selection of the objects of taxation
    with the basic policy of local autonomy. Such taxes,
    fees, and charges shall accrue exclusively to the local
    governments.
    DOUBLE TAXATION *if the exemption is granted for valuable
    The power to tax twice is as ample as to tax once consideration, it is deemed to partake of the nature of
    (Justice Holmes) a contract and the obligation thereof is protected
    There is double taxation when additional taxes are against impairment
    laid on the same subject by the same taxing
    jurisdiction during the same taxing period and for the
    same purpose
    -not prohibited under the constitution
    -the Supreme Court does not prohibit it as well
    **double taxation will not be allowed if it results in a
    violation of the equal protection clause

    Public Purpose
    To sustain a tax, it is necessary to show that the
    proceeds are devoted to a public purpose
    “public purpose” includes even indirect public
    advantage or benefit
    **the mere fact that the tax will be directly enjoyed
    by a private individual does not make it invalid so
    long as some link to the public welfare is established

    Tax Exemptions – constitutional or statutory

    Constitutional Exemption – Art. VI, §28 (3)


    Charitable institutions, churches, and parsonages or
    convents appurtenant thereto, mosques, non-profit
    cemeteries, and all lands, buildings, and
    improvements actually, directly, and exclusively used
    for religious, charitable or educational purposes shall
    be exempt from taxation

    *religious and charitable institutions give


    considerable assistance to the State in the
    improvement of the morality of the people and the
    care of the indigent and the handicapped
    *religious institutions – separation of Church and
    State; necessity to give full rein to the freedom of
    religious profession and worship

    Lladoc vs Commisioner on Internal Revenue


    The exemption is only from the payment of taxes
    assessed on such properties enumerated as property
    taxes as distinguished from excise tax
    A gift ax is not within the exemption provisions

    Statutory Exemption – Art. VI, §28(4)


    No law granting any tax exemption shall be passed
    without the concurrence of a majority of all the
    Members of the Congress

    -granted in the discretion of the legislature


    *tax exemptions will represent a loss of revenue to
    the government
    *if a tax exemption is granted gratuitously, it may be
    validly revoked at will, with or without cause

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