Practice question
A statute primarily raises money for public expenditure and only incidentally discourages a regulated activity. A challenger says any regulatory effect makes it necessarily a fee rather than a tax. Apply Gerochi.
- The primary revenue purpose supports tax classification despite incidental regulation
- Any regulatory effect conclusively prevents tax classification
- Only the name printed on the payment form matters
- A deterrent effect makes every public imposition a donation
- The legislative purpose is legally irrelevant
Legal references
- Gerochi v. DOE, GR159796, July17 2007 ENBANC MAIN: https://lawphil.net/judjuris/juri2007/jul2007/gr_159796_2007.html MAIN purpose-based distinction between taxation and police-power exactions.
- Lutz v. Araneta, GRL-7859, December22 1955 MAIN: https://lawphil.net/judjuris/juri1955/dec1955/gr_l-7859_1955.html MAIN regulatory taxation and sugar-industry public-welfare rationale.
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