TAXATION AS DISTINGUISHED FROM OTHER

INHERENT POWERS OF THE STATE

TAXATION vs POLICE POWER

TAXATION POLICE POWER

Is levied for the purpose of raising Exercised to promote public welfare

As to PURPOSE
revenues. through regulation.

The exaction is limited to the cost of

As to AMOUNT OF The amount gathered contemplates of
regulation, issuance of the license, or
EXACTION no limits.
surveillance.
No special or direct benefit other than
As to the BENEFITS the fact that the government secures to No direct benefits are received by the
RECEIVED BY THE the citizen that general benefit resulting taxpayer, yet a helath social economic
TAXPAYER from the protection of his person and standard of society is maintained.
property and the welfare of all.

As to SUPERIORITY OF Recognizes the obligations imposed by

This limitation does not apply.
CONTRACTS contracts.

As to TRANSFER OF Allows merely the restraint on the

Taxes paid form part of the public funds
PROERTY RIGHTS exercise of property rights.

TAXATION vs EMINENT DOMAIN

TAXATION EMINENT DOMAIN

Is levied for the purpose of raising

As to PURPOSE The taking of property for public use
revenues.

Payment of taxes accrue to the general Just compensation is given to the

As to COMPENSATION
benefit of the citizens of the taxing state. owner of the expropriated property.

Applies to all persons, property, property

As to PERSONS Only particular property is
rights and excises that may be subject
AFFECTED comprehended.
thereto.