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at gasoline stations, has repealed the law, the Minneapolis Star Tribune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.