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Gary, IN Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

License required
§ 32-70(b), from city controller
Bond required
$1,000.00 (§ 32-72)
Application must show
good moral character
Fee
graduated by square footage (§ 32-73)
Records
kept open to police (§ 32-44)
First-offense fine
up to $2,500

Summary

In the City of Gary, Municipal Code § 32-70(b) makes it unlawful to operate as a junk dealer, buying, selling or dismantling scrap metal, rags, paper or old vehicles, without a city license. Section 32-71 requires a written application showing good moral character, and § 32-72 requires a $1,000.00 bond to the city before the city controller will issue the license.

(b)It shall be unlawful for any person to exercise, carry on, or engage in business as a junk dealer without having first obtained a license from the city for that purpose as provided by this division. ... Every junk dealer and every person desiring to engage in the business of being a junk dealer shall make application in writing to the city controller, setting forth the place at which the applicant conducts or intends to conduct the business. The applicant shall furnish proof of his good moral character, which shall be satisfactory to the city controller. ... The applicant for a license under the provisions of section 32-71 shall submit with his application a bond executed to the city, with good and sufficient sureties approved by the controller, in the sum of $1,000.00, conditioned for the due observance of all ordinances of the city now in force or which may be hereafter passed respecting the conducting of the business of a junk dealer.

Full Breakdown

Chapter 32, Article III, Division 2 of the Gary Municipal Code sets out the licensing scheme for junk dealers, defined in § 32-70(a) as anyone who buys, sells, barters, stores, exchanges or dismantles junk, rubbish, old paper, rags, rope, bottles, scrap metal other than gold, silver or platinum, or wrecked vehicles and machinery. Section 32-70(b) makes operating as a junk dealer without a city license unlawful. To get one, § 32-71 requires a written application to the city controller stating the location of the business and furnishing proof, satisfactory to the controller, of the applicant's good moral character.

Section 32-72 then requires the applicant to post a $1,000.00 bond to the city, with sureties the controller approves, conditioned on the dealer's compliance with all existing and future city ordinances governing the junk business. The fee itself is graduated by square footage of the property the dealer uses, per § 32-73, and set in the Chapter 20 fee schedule. Licensed junk dealers face ongoing recordkeeping duties: § 32-44 requires a record of every purchase, including the date, a description of the item and any identifying numbers, and the name and address of the seller, open to inspection by the police department at any time.

Section 32-45 bars storing or dismantling junk on streets, alleys, sidewalks or parkways unless it is inside a building or an enclosure at least six feet high. Section 32-47 separately bars any junk dealer from also acting as a pawnbroker, taking pledges or pawns, or holding a pawnbroker's license. Violations of the licensing division are punished under the Code's general penalty, § 1-7, up to $2,500.00 for a first offense and up to $7,500.00 for a second or subsequent offense.

Violations & Fines

Operating as a junk dealer in Gary without the license required by § 32-70(b), or without the $1,000.00 bond required by § 32-72, violates the Code and is punished under the general penalty, § 1-7: up to $2,500.00 for a first offense, up to $7,500.00 for repeat offenses. Storing junk on a public street or unenclosed lot under § 32-45 is a separate violation.

Frequently Asked Questions

Do I need a license to operate a junk or secondhand shop in Gary?
Yes. Section 32-70(b) of the Municipal Code makes it unlawful to exercise, carry on or engage in business as a junk dealer in the city without first obtaining a license from the city controller under Chapter 32, Article III, Division 2.
What does a junk dealer license application require?
Under § 32-71, the applicant submits a written application to the city controller stating the business location, and must furnish proof of good moral character satisfactory to the controller.
Is a bond required?
Yes. Section 32-72 requires a $1,000.00 bond executed to the city, with sureties the controller approves, guaranteeing the dealer's compliance with current and future city ordinances on the junk business.
What records must a junk dealer keep?
Section 32-44 requires every purchase to be logged with the date, a description of the item and any identifying numbers, and the seller's name and address, and the records must be open to police inspection at all times.

Sources & Official References

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