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Madison, WI Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

Code section
MGO Ch. 9.49
State hold period
21 days (Wis. Stat. 134.71)
Reporting system
Leads Online
ID required
Yes, government photo

Summary

Madison secondhand dealers and pawnbrokers must license under MGO Ch. 9.49 and report transactions to police via Wisconsin's Leads Online system to deter trafficking in stolen goods.

134.71 Pawnbrokers and secondhand article and jewelry dealers. 134.71(1) (1) Definitions. In this section: 134.71(1)(a) (a) “Article” means any of the following articles except jewelry: 134.71(1)(a)1. 1. Audiovisual equipment. 134.71(1)(a)2. 2. Bicycles. 134.71(1)(a)3. 3. China. 134.71(1)(a)4. 4. Computers, printers, software and computer supplies. 134.71(1)(a)5. 5. Computer toys and games. 134.71(1)(a)6. 6. Crystal. 134.71(1)(a)7. 7. Electronic equipment. 134.71(1)(a)8. 8. Fur coats and other fur clothing. 134.71(1)(a)9. 9. Ammunition and knives. 134.71(1)(a)10. 10. Microwave ovens. 134.71(1)(a)11. 11. Office equipment. 134.71(1)(a)12. 12. Pianos, organs, guitars and other musical instruments. 134.71(1)(a)12m. 12m.

Source: Madison City ClerkView official code

Full Breakdown

MGO Ch. 9.49 requires anyone who buys and resells used merchandise (electronics, jewelry, instruments, tools) to obtain a Madison secondhand article dealer license. Dealers must collect seller ID, photograph items, and upload daily transaction reports to the Leads Online database accessible to Madison Police. State law (Wis. Stat. 134.71) sets a 21-day hold period before items can be resold, allowing investigators to recover stolen property. Antique dealers, charity thrift stores, and certain occasional sellers are exempt. Inspections are routine.

Violations & Fines

Failure to report transactions can mean fines $200-$1,000 per item, license suspension, and forfeiture of unreported merchandise; receiving stolen property charges may follow.

Frequently Asked Questions

Does an online reseller need a license?
If you operate from a Madison address and regularly buy used goods to resell, yes. Casual personal sales on Facebook Marketplace are not covered.
What about consignment shops?
Pure consignment (you sell on behalf of the owner without buying) is generally exempt, but if you take title to goods, MGO 9.49 applies.

Sources & Official References

Other rules in Madison

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All Madison rules

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Secondhand Dealers in Nearby Cities

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