JOINT BASE MCGUIRE-DIX-LAKEHURST --
The passing of legislation Oct. 14 that will raise New Jersey’s gas tax by 23 cents per gallon will also affect fuel prices at Army & Air Force Exchange Service Expresses on Joint Base McGuire-Dix-Lakehurst.
As a U.S. government entity, the Exchange is immune from state and local taxes unless the immunity is waived by an act of Congress. Congress did waive this particular immunity, with respect to motor fuel sold by the Exchange, by enacting the Hayden-Cartwright Act, 4 U.S.C. 104.
“As a result of the Hayden-Cartwright Act, the Exchange is required to pay state and local excise taxes on fuel,” said JB MDL Exchange General Manager Teo Smith. “Since the Exchange sets its gas prices based on the local competition, the price at Express pumps is expected to go up as the price outside the gate increases.”
In addition to state and local taxes, the Exchange is required to pay federal tax on gasoline as well.
The Army & Air Force Exchange Service goes where Soldiers, Airmen and their families go to improve the quality of their lives through goods and services provided. Exchange earnings provide dividends to support military morale, welfare and recreation programs. The Exchange is part of the Department of Defense and is directed by a Board of Directors, responsible to the Secretaries of the Army and Air Force through the Chiefs of Staff. To find out more about the Exchange history and mission or to view recent press releases please visit our Web site at http://www.aafes.com/about-exchange/public-affairs/press-releases.htm or follow us on Twitter at https://twitter.com/ExchangePAO.
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