Why Reading Has Some of the Strictest Business Licensing & Operations in the State

Reading maintains 100 local ordinances across all categories, and 2 of those deal specifically with business licensing & operations. Here is a breakdown of what the city actually requires, what is prohibited, and where Reading falls on the strict-to-permissive spectrum compared to other cities.

Tobacco Retail License

Reading tobacco retailers are licensed primarily at the state level. Pennsylvania Act 112 of 2020 (codified at 18 Pa.C.S. §6305) raised the minimum sales age to 21 for all tobacco products including e-cigarettes and vapes, and the PA Department of Revenue issues the Cigarette Dealer License. Reading retailers must also hold a city Business Privilege License from the Reading City Treasurer, but the city has not enacted a separate municipal tobacco license.

Key details: State Age: 21 (Act 112 of 2020, 18 Pa.C.S. §6305). State License: PA Cigarette Dealer License (Revenue Dept.). City License: Reading Business Privilege License. Local Tobacco License: None separate from BPL. Indoor Smoking: Banned (PA Clean Indoor Air Act).

Selling tobacco to a person under 21 is a summary offense under 18 Pa.C.S. §6305 with fines escalating from $100 to $500 for repeat offenses, plus possible license suspension. PA Department of Revenue can suspend or revoke the Cigarette Dealer License for tax violations. Reading Code Enforcement can fine for operating without a Business Privilege License under the city's Business Privilege & Mercantile Tax ordinance.

This is one of the stricter rules in Reading's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Secondhand Dealers

Reading secondhand dealers and pawnbrokers are regulated primarily under Pennsylvania state law - the Pawnbrokers License Act (63 P.S. §281-1 et seq.) and the Precious Metals Sales Act (73 P.S. §1932 et seq.) - and must hold a Reading Business Privilege License. PA requires precious-metals dealers to register with the Pennsylvania State Police, keep transaction records for 4 years, and hold purchased items for at least 7 days.

Key details: Pawnbroker Statute: PA Pawnbrokers License Act (63 P.S. §281). Precious Metals Statute: 73 P.S. §1932 et seq.. PSP Registration: Form SP4-302 required. Hold Period: 7 days minimum (precious metals). Recordkeeping: 4 years.

Operating a pawnshop without a Department of Banking and Securities license is a third-degree misdemeanor under 63 P.S. §281-25, punishable by up to 1 year and a $2,500 fine. Failing to register as a precious-metals dealer or to file required reports under 73 P.S. §1937 is a summary offense for the first violation and a third-degree misdemeanor for repeats, with fines up to $1,000 and license suspension. Reading can additionally fine for operating without a Business Privilege License.

This is not one of those rules that cities tend to ignore. Reading actively enforces its secondhand dealers requirements.

The Bottom Line

Reading is tougher than many cities when it comes to business licensing & operations. Out of the 2 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Reading, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Reading's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.