Coon Rapids Revokes Pay-Before-Pump Law

Gas station owners vigorously opposed the ordinance. The repeal will take effect May 4.

April 19, 2013

COON RAPIDS, Minn. – Coon Rapids, which last year approved an ordinance that mandated pay-before-you-pump at gasoline stations, has repealed the law, the Minneapolis Star Tribune reports. The City Council eliminated the ordinance after retailers pointed out that it harmed in-store sales. The repeal will start May 4.

“It took a viable business, a successful business, and really put it on life support,” said Rick Dehn, who owns a Marathon gas station in the city. He said that he lost around $1,000 in drive-offs in 2011, but since the law took effect in August, revenues are down around $25,000.

What facilitated the change is a new Minnesota law that gives gasoline station owners the ability to address drive-offs through civil solutions before involving the police. The Minnesota Petroleum Marketers Association will try to collect payment from drivers who leave without paying if station owners provide vehicle information on drive-offs.

Retailers said the civil process allows them to collect between 40% and 50% of drive-off losses. Owners say they can collect 40 to 50 percent of their losses through the civil process.

Coon Rapids had been the only Minnesota locality with an ordinance requiring prepayment before filling up. Currently, state Rep. Dan Schoen has a bill before the Legislature that would ban prepayment requirements. 

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