The Tax Status of Federal Resale Activities: Issues and Alternatives
FPCD-79-19
Published: Apr 19, 1979. Publicly Released: Apr 19, 1979.
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Highlights
The largest resale activities in the federal government are the Department of Defense commissaries, exchanges, clubs, and liquor stores. Because they are considered federal instrumentalities, these activities are exempt from most federal, state, and local taxes. In 1977 this indirect subsidy (revenue loss) totalled almost $300 million.
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Federal aid programsFederal taxesMilitary compensationMunicipal taxesPost exchangesSales taxesState taxesTax administrationTax evasionTax exempt status