Business Licensing & Operations in Salem, OR

If you live in Salem or are thinking about moving there, business licensing & operations are one of those things you probably won't think about until they affect you directly. Salem has 4 specific rules on the books covering different aspects of business licensing & operations, and some of them might surprise you.

Secondhand Dealers

Salem requires a city license before anyone operates as a dealer in used merchandise, a term that covers junk dealers, pawnbrokers and secondhand dealers. Licensees keep a full record of every article received, pledged or purchased, with seller identification and a thumb print, and report transactions to the Salem Police Chief. Buying prescription medications, gift cards or altered-serial property is a misdemeanor.

Key details: License required: Dealer in used merchandise license, SRC 30.010(c). Who is covered: Junk dealers, pawn brokers and secondhand dealers. Electronic reporting threshold: 50 or more transactions per calendar year, daily submission. Holding period: 14 days after receipt is reported to the Chief. Chief's hold order: Up to 180 days, oral orders confirmed in 48 hours.

Knowingly buying or lending against prescription medications, gift cards or altered-serial property (SRC 30.245) is a misdemeanor, as are buying from a person a court has barred from selling (SRC 30.240) and breaking the 14-day hold or a Chief's hold order (SRC 30.255, 30.260). Missing records (SRC 30.250), buying from anyone under 18 (SRC 30.230) and skipping proof of identity (SRC 30.265) are infractions, as is unlicensed operation. Civil penalties reach $2,000 per violation per day (SRC 30.070), appealable to the Hearings Officer.

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

Auto Repair on Residential Property

Salem's UDC excludes automotive repair from home occupations entirely: Sec. 400.125(b)(3)(A) reclassifies 'automotive repair, body work, painting, and other motor vehicle services' as a stand-alone 'motor vehicle services' use, and the residential zone tables mark that use prohibited (N), so no permit or home-occupation approval lets a resident run a repair shop out of a house, garage, or driveway.

Key details: Home occupation status: Excluded by Sec. 400.125(b)(3)(A). Reclassified as: 'Motor vehicle services' use, Sec. 400.055(b). Residential zones: Motor vehicle services prohibited (N) in every residential zone. Where allowed: Only zones permitting 'motor vehicle services' as a use. Max civil penalty: $2,000 per day under SRC § 20J.150.

Repairing vehicles for customers at a residence is treated as an unpermitted 'motor vehicle services' use in a zone where the UDC tables mark it N. Under SRC § 20J.140, code enforcement issues a correction order with at least ten business days to shut it down before a civil penalty attaches; SRC § 20J.150 caps that civil penalty at $2,000 per day the violation continues, and SRC § 20J.190 gives the resident 15 business days to appeal to the Hearings Officer.

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

Towing Companies

A Salem police officer may order your car towed from private property without your consent if you're arrested there or the officer reasonably believes you lack permission to park, under SRC 102.200. The City contracts with towing firms under a set maximum-charge schedule, and the tow company holds a lien on your vehicle until all charges are paid.

Key details: Governing section: SRC § 102.200 - Towing of vehicles. Non-consent trigger: Arrest plus no permission to park on lot. Hearing request window: 5 business days after notice. Hearing timing: Within two regular Municipal Court days. Low-value disposal threshold: $500 or less appraised, per ORS 819.215.

Tampering with or removing a City immobilizer, or moving a vehicle before the device is off, is separately unlawful under SRC 102.165 and 102.180. If the municipal judge finds the tow was invalid under SRC 102.215(f)(2), the City must release the vehicle, absorb the towing and storage charges, and reimburse whatever the owner already paid; new storage costs stop accruing 24 hours after release. A judge's decision on a hearing request is final and cannot be appealed.

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

Pawnbrokers

Salem treats a pawnbroker as a dealer in used merchandise, the same class as junk dealers and secondhand dealers, under Salem Revised Code Chapter 30. Every transaction goes into a ten-item record that includes a right thumb print and a photo ID copy. Dealers with 50 or more transactions a year report electronically by the end of business each day, and purchased property is held 14 days after the Chief of Police receives the report.

Key details: Who is covered: Pawnbrokers, junk dealers and secondhand dealers. Record items per transaction: Ten, including right thumb print and photo ID copy. Holding period: 14 days after the Chief receives the report. 50 or more transactions a year: Electronic records, reported by end of business daily. Under 50 transactions a year: Report within three days, or mail within two days.

Failing to make or keep a required record is an infraction under SRC 30.250, and buying or lending without adequate proof of identity is an infraction under SRC 30.265. Knowingly selling or altering property inside the 14 day hold, commingling it, or failing to produce it for a peace officer is a misdemeanor under SRC 30.255. Buying from a minor is an infraction under SRC 30.230. Knowingly taking prescription medications, gift cards, or items with altered serial numbers is a misdemeanor under SRC 30.245.

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

The Bottom Line

Salem is tougher than many cities when it comes to business licensing & operations. Out of the 4 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Salem, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Salem's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.