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Merced, CA Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

Permit authority
Granted in writing by the city council
Governing section
Municipal Code Sec. 5.28.030
Record-keeping
Log of every item bought/pledged, Sec. 5.28.060
Exempt items
Rags, bottles, barrels, cans, cast-off clothing
Inspection
Chief of police may inspect records anytime
Revocation
City council, after notice and hearing

Summary

Merced requires anyone running a secondhand goods, junk, or pawnbroker business to get a written permit from the city council before opening, under Municipal Code Section 5.28.030. Chapter 5.28 also defines what counts as regulated 'furniture and household goods' and requires dealers to log every item bought or pledged for police inspection.

It is unlawful for any person to engage in, conduct, manage or carry on the business of pawnbroker, secondhand dealer or junk dealer without first applying for and receiving a permit therefor in writing from the city council.

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 85 - 1-26).

Full Breakdown

030 of the Merced Municipal Code makes it unlawful to engage in, conduct, manage, or carry on the business of pawnbroker, secondhand dealer, or junk dealer in the city without first applying for and receiving a written permit from the city council. 040 requires the applicant to file a written application with the city clerk specifying the exact street address where the business will operate and the applicant's name and address. 020 exempts junk dealers who buy or sell only rags, bottles, barrels, cans, or cast-off clothing and shoes from the chapter entirely.

060 requires every dealer in secondhand goods, other than furniture and household goods, whether operating as pawnbroker, junk dealer, or otherwise, to keep a running record of every article sold or purchased. That record must show the hour the item was received, the seller's name, address, and physical description, the pawn ticket number if pledged, the amount loaned or paid, and a full description of the item, including any engraved numbers or settings, and it must be open to inspection by the chief of police or any other police officer at all times during business hours. Blank report forms are supplied by the chief of police.

Violations & Fines

Section 5.28.050 lets the city council revoke a secondhand dealer's permit if the holder violates any provision of this chapter or conducts the business unlawfully, but only after giving the permittee notice and a chance to appear before the council to show cause why the permit should not be revoked. A dealer who fails to keep the required purchase-and-sale record, or who blocks a police inspection of it under Section 5.28.060, is separately subject to Chapter 1.12's general penalty: a misdemeanor punishable by up to a $1,000 fine, up to one year in jail, or both.

Frequently Asked Questions

Do I need city council approval to open a pawnshop or secondhand store in Merced?
Yes. Section 5.28.030 makes it unlawful to conduct the business of pawnbroker, secondhand dealer, or junk dealer in Merced without a written permit from the city council. You apply through the city clerk under Section 5.28.040 and must specify the exact street address of the proposed business location.
What records must a Merced secondhand dealer keep?
Section 5.28.060 requires a running log of every item sold, purchased, or pledged, including the hour received, the seller's name, address, and physical description, the pawn ticket number, the amount loaned or paid, and a full description of the item. The chief of police or any officer can inspect that record during business hours.
Can Merced revoke a secondhand dealer's permit?
Yes. Section 5.28.050 lets the city council revoke the permit if the holder violates the chapter or runs the business unlawfully, but only after the council gives notice and lets the permittee appear at a hearing to show cause why the permit should stand.

Sources & Official References

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