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

Every city handles business licensing & operations a little differently. In Scranton, Pennsylvania, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Tobacco Retail License

Scranton 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. Scranton retailers must also hold a city Mercantile/Business Privilege License from the Single Tax Office; Scranton 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: Scranton Mercantile/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. Scranton DLIP can cite for operating without a Mercantile/Business Privilege License under the city's tax ordinance.

Compared to other cities, Scranton takes a harder line on tobacco retail license. The enforcement and penalty structure reflects that.

Secondhand Dealers

Scranton 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 Scranton Mercantile/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 before resale.

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. Scranton can additionally cite for operating without a Mercantile/Business Privilege License.

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

The Bottom Line

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