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In a nutshell, Michigan is not legally bound to return a deposit on a container when no deposit was paid in the first place. To request a return on a deposit when no deposit was not paid in the first place is considered Fraud in Michigan…
Example below…
About 30-years ago, my son and his friends heard that Michigan was paying about 10-cents for each recycled can or container… Here in Virginia soda cans were recycled for about 55-cents a pound (about 35-cans…) for crushed cans. But Michigan was paying $3.50 for those same 35-cans…
But the hitch was that the cans could not be crushed or they were only sold for scrap like in Virginia. The reason that they could not be crushed was that each can, bottle, or container was fed into a machine that spun it around and it read the UPC to ensure that it was not brought in from places where no deposit was paid.
So my son and his friends went on a serious can drive, even buying un-crushed cans from other collectors and they loaded up a van with so many cans that the three of them could barely fit.
They went up to Michigan, collected the deposit on the cans, and they then returned with money to burn on all sorts of new stuff.
But while they were up there, they heard of a "Can Cartel" that was transporting out of state cans into Michigan for the deposit… And the Michigan State Troopers busted a lot of "Bad-canners…" and confiscated tons of cans that never originated in Michigan…
And here's why it is illegal… The Deposit collected by the retailer is turned over to the State just like Sales Tax… When the deposit is paid out for a return, it is from the deposits that were paid previously. But when out-do-state cans are turned in; the deposit is not being returned but rather paid out to someone who never paid the deposit in the first place and essentially that meant Michigan was paying to have trash brought into the state…
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