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Carrollton, TX Business Licensing & Operations: Secondhand Dealers (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing chapter
City Code Ch. 115
Reporting window
48 hours via LeadsOnline
Hold period
7 business days before resale
Records retention
1 year from purchase date
Max fine
$500 per offense
Enforcing agency
Carrollton Police Department

Summary

Carrollton requires every secondhand dealer, secondhand metal dealer, and crafted precious metal dealer to record each purchase and report it to the police department's designated LeadsOnline system within 48 hours under City Code § 115.03. Sellers must show a driver's license, and dealers must hold merchandise for seven business days before resale under § 115.02, giving police a window to recover stolen property.

A person who purchases regulated property for the purpose of resale shall: (A) Keep a sales record which indicates the manufacturer or authorized vendor from which the regulated property was purchased; or (B) If the regulated property was purchased from other than a manufacturer or authorized vendor, the person shall: (1) At the time of purchase, record in a legible manner, the name, address, driver's license number or personal identification certificate number of the seller, a precise and accurate description of the property purchased, and the price paid or other consideration exchanged for the property purchased; (2) At the time of purchase determine that the photograph on the driver's license or personal identification certificate is a photograph of the seller; (3) Retain possession of the properly purchased and withhold the property from resale for seven business days; (4) Make the purchased property available for inspection by any Police Officer during regular business hours while the property is in the person's possession.

Full Breakdown

Chapter 115, Regulated Property, covers eight categories of used goods: electronic equipment, business machines, photographic equipment, power tools, musical instruments, firearms, jewelry, and crafted precious metals under City Code § 115.01. Under § 115.02, any dealer buying regulated property for resale must keep a sales record showing the manufacturer or authorized vendor, or, for purchases from the public, log the seller's name, address, driver's license or state ID number, a description of the item, and the price paid, and confirm the ID photo matches the seller.

Section 115.03 layers on an electronic reporting duty: beginning 60 days after the ordinance took effect, every crafted precious metal dealer, metal recycling entity, secondhand dealer, and secondhand metal dealer must upload each transaction, including a digital photo of any unserialized item, to the LeadsOnline reporting system within 48 hours, and keep the records on file for one year. Automobile dealerships, charities, used clothing and furniture businesses, antique dealers, and garage sales under Chapter 92 are exempt from the reporting duty.

Section 115.04 makes it unlawful for a dealer to buy an item bearing government or utility markings without written transfer authorization, to buy sealed retail merchandise without a receipt, to buy from a minor without parental written consent on file, or to refuse a police officer's inspection request. An investigating officer may inspect and copy the required records, and retain the original transaction ticket, without a court order under § 115.04(H).

Violations & Fines

Violating Chapter 115's recordkeeping, reporting, or inspection duties is a misdemeanor under § 115.05, punishable by a fine up to $500 per offense under City Code § 10.99(A)(1)(j). Carrollton Police Department investigators can inspect and copy transaction records without a court order and can act on property purchased without the required seller ID and description on file.

Frequently Asked Questions

Does Carrollton require secondhand dealers to register purchases?
Yes. City Code § 115.02 requires every dealer buying used electronics, tools, jewelry, firearms, or crafted precious metals for resale to log the seller's name, address, driver's license number, item description, and price paid at the time of purchase.
How fast must a dealer report a purchase to police?
Within 48 hours. Section 115.03 requires crafted precious metal dealers, metal recycling entities, and secondhand dealers to upload each transaction, including a photo of any unserialized item, to the city's designated LeadsOnline reporting system, then keep the file for one year.
How long must a secondhand dealer hold an item before reselling it?
Seven business days. Section 115.02(B)(3) requires the dealer to retain possession of purchased regulated property and withhold it from resale for seven business days, giving Carrollton police time to check it against stolen-property reports before it can be sold again.
Are pawnshops covered by Carrollton's secondhand dealer rules?
No. Section 115.03(E) expressly excludes pawnbrokers licensed under the Texas Pawnshop Act, Finance Code Chapter 371, from Chapter 115's reporting scheme, though they may comply voluntarily. Their recordkeeping is regulated entirely by the state, not the city.

Sources & Official References

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