thedrifter
07-22-08, 07:17 AM
No tax breaks at the pump for military bases
Comments | Recommend
Local installations use nearby gas stations to set prices
July 21, 2008 - 3:36PM
By Aaron Aupperlee, city editor
Despite a reputation for lower prices on food and other products, prices at the pumps of Barstow’s military installations mirror those at stations in town.
Most products, from food to clothing, are less expensive at stores on military installations because the products are not subject to taxes the local grocery and hardware store pay, but at the pump, all things are equal.
An act of Congress, the Hayden-Cartwright Act of 1934, stripped gasoline of the immunity from state and federal taxes that most goods sold on military bases enjoy, said Judd Anstey, a spokesman for the Army and Air Force Exchange Service, which provides gasoline services to both Fort Irwin and the Marine Corps Logistics Base, Barstow. To set the prices, Anstey said that installations survey nearby gas stations and use the lowest price.
At the MCLB, Gary Fulham, the director of Marine Corps Community Services, looks at prices from Yermo to Lenwood and then tries to set his a bit lower. Marine Corps Community Services has a contract with AAFES to buy gasoline. Each day, and sometimes multiple times a day, Fulham receives notice of what his gasoline distributor’s suggested price, looks at stations across Barstow and the sets a price so that gas station can make enough profit to cover expenses.
“Our goal has been to be two cents cheaper than the local competition,” Fulham said. “When we can afford to do that.”
Last week, Fulham and his team at the gas station figured they could afford to drop the price of gas below $4 to $3.99 on Thursday. He said the one price fall was a 25 cent drop from the day before but was raised by the weekend. Fulham said in one respect, he tried to keep prices low on the base to help out the Marines stationed there and their family. Only active duty and retired military personnel, family members, and Marine Corps Community Services Employees are allowed to use the base’s gas station. Fulham suspects it would take an act of Congress to open the station up to the base’s employees.
“We’ve asked a number of times to get that changed and no,” he said.
Civilians can use the gas station at Fort Irwin. According to Staff Sgt. Gregory Crutchfield, who was filling up his car on Thursday, prices at the Fort Irwin station are similar to what he pays in town. The general manager of AAFES at Fort Irwin would not answer questions about how the price is set, what stations Fort Irwin bases their prices off of and how many times a week they survey Barstow prices.
Andee Goodwin contributed to this report.
Contact the writer:
(760) 256-4121 or aaron_aupperlee@link.freedom.com
Ellie
Comments | Recommend
Local installations use nearby gas stations to set prices
July 21, 2008 - 3:36PM
By Aaron Aupperlee, city editor
Despite a reputation for lower prices on food and other products, prices at the pumps of Barstow’s military installations mirror those at stations in town.
Most products, from food to clothing, are less expensive at stores on military installations because the products are not subject to taxes the local grocery and hardware store pay, but at the pump, all things are equal.
An act of Congress, the Hayden-Cartwright Act of 1934, stripped gasoline of the immunity from state and federal taxes that most goods sold on military bases enjoy, said Judd Anstey, a spokesman for the Army and Air Force Exchange Service, which provides gasoline services to both Fort Irwin and the Marine Corps Logistics Base, Barstow. To set the prices, Anstey said that installations survey nearby gas stations and use the lowest price.
At the MCLB, Gary Fulham, the director of Marine Corps Community Services, looks at prices from Yermo to Lenwood and then tries to set his a bit lower. Marine Corps Community Services has a contract with AAFES to buy gasoline. Each day, and sometimes multiple times a day, Fulham receives notice of what his gasoline distributor’s suggested price, looks at stations across Barstow and the sets a price so that gas station can make enough profit to cover expenses.
“Our goal has been to be two cents cheaper than the local competition,” Fulham said. “When we can afford to do that.”
Last week, Fulham and his team at the gas station figured they could afford to drop the price of gas below $4 to $3.99 on Thursday. He said the one price fall was a 25 cent drop from the day before but was raised by the weekend. Fulham said in one respect, he tried to keep prices low on the base to help out the Marines stationed there and their family. Only active duty and retired military personnel, family members, and Marine Corps Community Services Employees are allowed to use the base’s gas station. Fulham suspects it would take an act of Congress to open the station up to the base’s employees.
“We’ve asked a number of times to get that changed and no,” he said.
Civilians can use the gas station at Fort Irwin. According to Staff Sgt. Gregory Crutchfield, who was filling up his car on Thursday, prices at the Fort Irwin station are similar to what he pays in town. The general manager of AAFES at Fort Irwin would not answer questions about how the price is set, what stations Fort Irwin bases their prices off of and how many times a week they survey Barstow prices.
Andee Goodwin contributed to this report.
Contact the writer:
(760) 256-4121 or aaron_aupperlee@link.freedom.com
Ellie