Business Licensing & Operations in Waco, TX

If you live in Waco 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. Waco has 5 specific rules on the books covering different aspects of business licensing & operations, and some of them might surprise you.

Pawnbrokers

Waco pawnbrokers, along with secondhand stores, salvage dealers, and junk dealers, cannot accept used merchandise between 6:00 p.m. and 7:00 a.m., and must hold every item unaltered in the local store for at least ten days before selling, disposing of, or moving it out of the city.

Key details: Buying hours: No used goods accepted 6 p.m. to 7 a.m.. Hold period: 10 days minimum before resale, Sec. 13-309. Recordkeeping: Entry within one hour of each transaction. Daily police report: Full purchase list due to chief of police. Minors: Written parent/guardian consent required to buy from a minor.

Failing to keep the required daily records, refusing a police inspection, buying from an unaccompanied minor, or selling property before the ten-day hold expires violates Article VIII and is punishable under Section 1-14's general penalty of $1.00 to $500.00 per offense, with the owner, manager, or operator equally liable for an employee's violation under Section 13-312.

This is not one of those rules that cities tend to ignore. Waco actively enforces its pawnbrokers requirements.

Tobacco Retail License

Waco's zoning code treats a "smoke shop" (any premises where tobacco or vaping products account for more than 20 percent of floor space or sales) as a use requiring locational clearance. In the C-3 general commercial district, a new smoke shop cannot open within 500 feet of a school, day care center, park, or another smoke shop, a rule the city repeats district by district.

Key details: Buffer distance: 500 feet from schools, day cares, parks, other smoke shops. Smoke shop definition: >20% of floor space or sales from tobacco/paraphernalia. Districts covered: C-3, C-4, C-5 commercial districts. Permit type: Permitted use, not special permit, if buffer met. Abandonment rule: 1-year lapse or license revocation ends nonconforming use.

Operating a smoke shop within the 500-foot buffer of a school, day care center, park, or another smoke shop violates Section 28-653(d) or the parallel C-4/C-5 provisions and is enforced by the city's inspection services department, which may withhold or revoke a certificate of occupancy and order the use discontinued. A smoke shop whose operation lapses for a year, or whose state tobacco permit or license is revoked for a year, is deemed abandoned under Section 28-95(c)(1) and cannot reopen without meeting current zoning.

Secondhand Dealers

Waco requires metal recycling entities, junk dealers, and secondhand dealers to log every regulated-metal purchase in a police-approved, real-time electronic database, verify the seller's age with photo ID, and hold the item unaltered for 72 hours, excluding weekends and holidays, before it can be sold or dismantled.

Key details: Hold period: 72 hours, excluding weekends/holidays, Sec. 13-331(a). ID required: Photo ID plus thumbprint impression of seller. Database: Real-time electronic report to police department. Minors: Written parent/guardian consent required, cans excepted. Regulated metals: Copper, catalytic converters, manhole covers, utility hardware.

Selling or dismantling regulated metal before the 72-hour hold expires, skipping the real-time database entry, buying from an unaccompanied minor, or purchasing marked city or utility property without written authorization is a misdemeanor under Section 13-339, with each day of continued violation a separate offense and a fine under Section 1-14.

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

Towing Companies

Waco's wrecker ordinance bars tow operators from moving a wrecked vehicle from an accident scene without the owner's consent unless a police officer directs the removal for safety or property protection. Wreckers must also display an identification sign, and any yard storing towed vehicles must be fenced.

Key details: Non-consent removal: Barred without owner consent or police direction. Cleanup duty: Operator must remove accident debris, Sec. 13-129. Storage yards: Must be fenced per Sec. 16-47. ID sign: Two-inch letters, legible 50 feet, both sides. Penalty: $1 to $500 fine, Sec. 1-14.

Removing a wrecked vehicle without the owner's consent, absent police direction, or interfering with a vehicle's position at an accident scene is unlawful under Section 13-131. Operators who fail to fence a storage yard under Section 13-133 or display required identification under Section 13-134 are likewise in violation and subject to the general Code penalty of $1.00 to $500.00 per offense under Section 1-14.

Adult Entertainment

Operating a sexually oriented business in Waco requires a city license from the building official, and the establishment must sit at least 600 feet from homes, schools, churches, parks, and any other adult business. It is barred outright from R, O, C-1, and M zoning districts.

Key details: Enforcing agency: City building official. License fee: $350 initial; $150 renewal. Separation distance: 600 feet. Prohibited zones: R, O, C-1, M districts. Penalty: Class A misdemeanor.

Each violation is a Class A misdemeanor, and every day the violation continues is a separate offense; the city may also seek civil injunctions and abate the premises as a public nuisance.

The Bottom Line

Waco is tougher than many cities when it comes to business licensing & operations. Out of the 5 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Waco, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Waco's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.