Extent of Legislative Power to Tax

 


11.   What is the extent of the legislative power to tax? Explain. (SPAM)

Subject to constitutional and inherent restrictions, the legislature has discretion to determine the subjects or objects to be taxed; the purpose or object of the tax so long as it is a public purpose; the amount or rate of the tax; and the manner, means, and agencies of collection of the tax.

A state is free to select the subject of taxation. They may be persons, whether natural or juridical; property, whether real or personal, tangible or intangible; businesses, transactions, rights or privileges.

The legislative body can levy a tax or make an appropriation provided it is for public purpose. Its determination, however, on the question of what is a public purpose is not conclusive. The courts can inquire into whether the purpose is really public or private.

As a general rule, the legislature may levy a tax of any amount or rate it sees fit.

Having the sole power to tax, the legislature must equally possess the sole power to prescribe the mode or method by which the tax shall be collected, and to designate the officers through whom its will shall be enforced, as well as the remedies which the State or the taxpayer may avail in connection therewith.


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