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Chelsea, MA Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

Licensing authority
Chelsea Licensing Commission
School/public building buffer
500 feet
Resale holding period
at least one week
Purchase log
item description, seller name/age/address, date
Sign lettering
6 to 12 inches high
Vehicle marking
owner name, letters at least 2 inches

Summary

Anyone who buys, barters or stores junk, old metal, rags or other secondhand articles in Chelsea needs a license from the Licensing Commission under Code of Ordinances Article IV. Dealers must log every purchase, cannot buy from minors, and cannot locate within 500 feet of a school.

(a)No person shall purchase, barter, collect or store junk, waste materials, materials discarded by others, old metal, rags or other secondhand articles, for any purpose, without first having received a license to do so from the licensing commission. ... Every keeper of a shop for the purchase, sale or barter of junk, old metals or secondhand articles shall keep a book in which shall be written, at the time of every purchase of any such article:(1)A description of the article purchased;(2)The name, age and residence of the person from whom purchased; and(3)The day and hour when such purchase was made. ... No keeper of a shop for the purchase, sale or barter of junk, old metals or secondhand articles shall, directly or indirectly, either purchase or receive, by way of barter or exchange, any of the articles aforesaid of any minor, knowing or having reason to believe such person to be a minor. ... No dealer or collector of junk, rags, or secondhand articles shall be allowed to keep, expose, sort or offer for sale any junk in any shop, store or any other building which is located within 500 feet of any school or other public building.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26).

Full Breakdown

Chelsea's junk dealer article, sections 14-107 through 14-117 of the Code of Ordinances, requires a license from the licensing commission before any person may purchase, barter, collect or store junk, waste materials, old metal, rags or other secondhand articles for any purpose; city officers acting in their official capacity are exempt. Every shop keeper must maintain a purchase book recording a description of each article bought, the name, age and residence of the seller, and the day and hour of the purchase, and that book must stay open to inspection by any city police officer at any time.

Shops must post a sign bearing the keeper's name and occupation in letters no smaller than six inches and no larger than twelve inches. Purchases cannot be resold for at least one week after acquisition, and dealers may never knowingly purchase from a minor. Collectors licensed only to gather junk, old metal or rags cannot store old rags overnight in any city building, and every vehicle used to collect junk, metal, rags or secondhand articles must display the owner's name or business in legible letters at least two inches tall on each side.

A junk shop, store or other building housing the business cannot be located within 500 feet of any school or other public building, and premises must be kept neat and orderly, with secondhand clothing enclosed in sacks, boxes, barrels or other covered containers.

Violations & Fines

A person who buys, sells or stores secondhand articles without the required license, or who violates the recordkeeping, minor-purchase, retention-period, signage or 500-foot school-distance rules of Article IV, is subject to the general penalty of section 1-8. The licensing commission can revoke a license after notice and a hearing for any violation of the article's provisions.

Frequently Asked Questions

Do I need a license to run a junk shop in Chelsea?
Yes. Section 14-108 requires a license from the licensing commission before anyone purchases, barters, collects or stores junk, old metal, rags or other secondhand articles for any purpose, and the license can be revoked after notice and a hearing for violations.
How close can a junk shop be to a school?
No closer than 500 feet. Section 14-114 bars any dealer or collector from keeping, exposing, sorting or offering junk for sale in a shop, store or building located within 500 feet of a school or other public building.
How long must a secondhand dealer hold an item before reselling it?
At least one week from the date it was purchased or received, per section 14-113, giving police time to check the dealer's required purchase log against reported thefts before the item can be resold.
Can a Chelsea secondhand dealer buy from a minor?
No. Section 14-112 forbids a shop keeper from purchasing or receiving, by purchase or barter, secondhand goods from anyone the keeper knows or has reason to believe is a minor.

Sources & Official References

Other rules in Chelsea

All Chelsea rules

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