Good News for the Fuel Pumps!

Posted on December 14, 2011

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Stariha & Brower, PLC are pleased to announce a recent Circuit Court decision in favor of our client.

Licensees (or hopeful licensees) with fuel pumps at their location know how difficult it can be to meet the requirements of the so-called “Meijer Bill” (MCL 436.1541).  For a location to meet the requirement of 436.1541(1)(a)(ii), it is necessary to maintain $250,000 in inventory – and that inventory must be “those goods and services customarily marketed by approved types of businesses.”

In the past, we found that tobacco products (rolling papers) worked well for locations with limited space for inventory.  Recently, however, we tried something new – Postage Stamps.  Unlike tobacco products, Forever Postage Stamps will increase in value as postage prices increase.

Initially, MLCC denied the request, finding that postage stamps were not qualifying inventory.  On appeal to the Circuit Court, we successfully demonstrated that such postage stamps are, in fact, qualifying inventory.  As the Court determined, “postage stamps do constitute goods customarily marketed by an approved type business . . .”

While this decision does not eliminate the problems caused by the Meijer Bill, it does provide a new avenue for hopeful licensees seeking to obtain an SDD or SDM without building an addition in which to store their $250,000 of inventory.

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