Auburn, AL Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- Annual license tax
- $500 per calendar year
- Investigation fee
- $25 with application
- Police registration deadline
- 5 days after opening
- Item hold period
- 96 hours after reported purchase
- Appeal window
- 14 days to city council
Summary
Auburn requires every pawnbroker and secondhand dealer to obtain a license from the city manager and pay a $500 annual license tax before buying, trading, or taking in pawn any secondhand goods. Dealers must register with the police chief within five days of opening and hold purchased items for 96 hours before resale.
It shall be unlawful for anyone to conduct, purchase, or operate as a licensee, pawn broker or second hand dealer by purchasing or receiving in pawn any tangible item of personal property including, but not limited to second hand goods as defined above within the city without first paying to the city manager the license tax herein described and procuring a license from the designated officer of the City of Auburn. ... The license tax hereby levied against buyers against buyers as described herein shall be five hundred dollars ($500.00) for each calendar year or any fraction thereof. There shall be no reduced license for any period less than the calendar year.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 90).
Full Breakdown
Under Article IX of the Auburn city code, anyone who operates as a pawnbroker or secondhand dealer, buying, trading, or receiving personal property in pawn, must first pay the city manager a $500 annual license tax and secure a license before doing business (§ 12-221, § 12-222). Applicants file a sworn application in duplicate with a 2-inch by 2-inch photograph, fingerprints, driver's license number, employer information, and the names of two reliable county property owners who can vouch for the applicant's character (§ 12-223), plus a $25 investigation fee (§ 12-224).
The police chief investigates the applicant's business and moral character before endorsing the application, and the city manager makes the final approval or denial; a denied applicant may appeal in writing to the city council within 14 days (§ 12-225, § 12-226). Licensees who already hold a city jewelry license are exempt from the license fee (§ 12-229). Once licensed, dealers must register their name and business address with the chief of police within five days of opening (§ 12-203), keep a book recording every seller's identity, driver's license or Social Security number, and a description of goods taken in (§ 12-204), tag each item with a number matching the ledger entry (§ 12-206), and submit a daily transcript of transactions to the chief of police (§ 12-205).
Purchased property must be held in its original, unaltered form within city limits for 96 hours after the purchase is reported to police, unless the chief grants written permission for an earlier sale or alteration (§ 12-207). Books and inventory stay open to police inspection at all times (§ 12-208).
Violations & Fines
Operating as a pawnbroker or secondhand dealer without first obtaining the license, or violating any recordkeeping, tagging, reporting, or 96-hour hold requirement in Article IX, is punishable under the general penalty in § 1-9 of the Auburn code (§ 12-210). The police chief can inspect books at any time and refer noncompliant dealers for prosecution.
Frequently Asked Questions
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Sources & Official References
Other rules in Auburn
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