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FPCD-79-19 1 (1979-04-19)

handle is hein.gao/gaobacjir0001 and id is 1 raw text is: 



STUDY BY THE STAFF OF THE US,


General Accounting Office










The Tax Status Of Federal

Resale Activities:

Issues And Alternatives




There are thousands of resale activities in the
Federal Government. The largest, Department
of Defense commissaries, exchanges, clubs,
and liquor stores, are widespread and big busi-
ness. Because they are considered Federal
instrumentalities, they are exempt from most
Federal, State, and local taxes. In 1977 this
indirect subsidy (revenue loss) for Defense
activities totaled almost $300 million.

This study discusses the pros and cons of
changing the tax status and the effects a
change could have on the resale and other ac-
tivities and on Federal intergovernmental aid
programs. It also highlights some alternatives
that if implemented would limit the revenue
loss.                                                      iii ' i 'i ui 1111111



                                                               109131






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                                                                      FPCD-79- 19
       nC~mT TTZe                                                  APRIL 19, 1979

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