Colonie, NY Business Licensing & Operations: Secondhand Dealers (2026)

New York's framework for pawn shops and secondhand stores operates on a state-and-local model. (1) Pawnbrokers are licensed under GBL Article 5 (§§40-55). Cities of 125,000 or more issue the license through the local commissioner or chief of police (GBL §40); in towns and smaller jurisdictions like Colonie, the Town Board has authority to issue the license. Pawnbrokers must post a surety bond, charge interest within statutory limits set by GBL §46 (currently 4% per month on loans up to $100, declining thereafter), provide a redemption period before sale, and keep detailed loan records on the form required by GBL §44. (2) Dealers in secondhand articles (junk dealers, gold buyers, scrap and used-goods stores) fall under GBL Article 6, beginning at §60, which expressly authorizes any town, village, or city to require a local license, set fees, and impose recordkeeping requirements by local law. Under typical Capital Region local laws modeled on GBL §60, dealers must register with the town clerk, maintain transaction records (seller's government-issued photo ID, description, price, photograph) and report transactions to the local police department - in Colonie, the Colonie Police Department - often via the LeadsOnline web service. Many Capital Region towns require a hold period (commonly 15 days) before resale to allow stolen-property checks. Every secondhand dealer must also comply with Colonie's general business-licensing and zoning chapters (ecode360.com/CO0290), and used-goods retail uses are subject to district restrictions in the Zoning Chapter.