b. Police Power

Taxation and Eminent Domain as Implements on Police Power

Taxation may be used as an implement of police power [Lutz v. Araneta, G.R. No. L-7859 (1955)].

Eminent domain may be used as an implement to attain the police objective [Association of Small Landowners v. Secretary of Agrarian Reform, G.R. No. 78742 (1989)].

Specific Coverage

• Public Health
• Public Safety
• Public Morals
• General Welfare [Abe v. Foster Wheeler Corporation and Caltex, G.R. No. L-14785 & L-14923 (February 27, 1961)]

Two Branches of General Welfare Clause (POLICE POWER)

General legislative power - Authorizes municipal councils to enact ordinances and make  regulations not repugnant to law and may be necessary to carry into effect and discharge the powers and duties conferred upon it by law.

Police power proper - authorizes the municipality to enact ordinances as may be proper and necessary for the health and safety, prosperity, morals, peace, good order, comfort and convenience of the municipality and its inhabitant, and for the protection of their property. (Fernando v. St. Scholastica's College, G.R. No. 161107, 2013)

Branches of the General Welfare Clause:

• General legislative power - authority to enact ordinances and regulations as may be necessary to carry into effect and discharge the powers and duties conferred upon the municipal council by law.
• Police power proper - authority to enact ordinances as are necessary and proper to provide for the health and safety, promote prosperity, improve morals, peace and good order etc.

Requisites of a Valid Ordinance (Police Power of LGUs) (Must NOT CUPPU, Must be GC)

• It must not contravene the constitution or any statute;
• It must not be unfair or oppressive;
• It must not be partial or discriminatory;
• It must not prohibit but may regulate trade;
• It must not be unreasonable; and
• It must be general and consistent with public policy.

Mayor has ministerial duty to ensure that all taxes and other revenues of the city are collected

The mayor has the ministerial duty to ensure that all taxes and other revenues of the city are collected, and that the city funds are applied to the payment of expenses and settlement of obligations  of the city, in accordance with law or ordinance. On the other hand, under the LGC, all local taxes, fees, and charges shall be collected by the provincial, city, municipal, or barangay treasurer, or their duly-authorized deputies, while the assessor shall take charge, among others, of ensuring that all laws and policies governing the appraisal and assessment of real properties for taxation purposes are properly executed. Thus, a writ of prohibition may be issued against them to desist from further proceeding in the action or matter specified in the petition. (Ferrer v. Bautista, G.R. 210551, 2015).

The socialized housing tax charged by the city is a tax which is within its power to impose. Aside from the specific authority vested by Section 43 of the UDHA, cities are allowed to exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provision of the basic services and facilities which include, among others, programs and projects for low-cost housing and other mass dwellings. The collections made accrue to its socialized housing programs and projects. The tax is not a pure exercise of taxing power or merely to raise revenues; it is levied with a regulatory purpose. The levy is primarily in the exercise of the police power of the general welfare of the entire city. It is greatly imbued with public interest.