Henrico County, VA Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- Tax base
- Purchases, not gross receipts
- Base rate
- $25 on first $10,000 plus $0.20/$100
- Deduction
- $1,000,000 exempted from purchases first
- Exemption
- Retail stores buying back recyclables
- Location
- Ch. 20, Art. XI, Division 11 (Wholesale Merchants)
Summary
Henrico taxes junk dealers and secondhand paper dealers the same way it taxes wholesale merchants: on purchases, not receipts, under a sliding per-$100 rate. Sec. 20-693 carves out one exception: a retail store that simply buys back wastepaper or recyclable containers doesn't need the wholesale merchant license.
Every junk dealer and secondhand paper dealer must pay, for the privilege of transacting business, the merchant's license tax prescribed by this division for wholesale merchants; provided, however, this section does not apply to a retail merchant who receives and purchases at his retail store wastepaper, recyclable containers or other such recyclable material.
Full Breakdown
Henrico County Code § 20-693 puts junk dealers and secondhand paper dealers on the same license footing as wholesale merchants under Chapter 20, Article XI, Division 11. Rather than a flat retail-style tax on gross receipts, the wholesale merchant's license tax that Sec. 00 above that. 00 deduction from purchases before the rate is applied. Sec. 20-693 draws one carve-out: a retail merchant who buys wastepaper, recyclable containers, or other recyclable material at his own retail store does not need the wholesale merchant's license just because that material happens to be secondhand.
The section traces to Code 1980 § 12-159 and was last amended by Ordinance No. 1053 in 2003, so its text and exemption have stood unchanged for over two decades even as the underlying wholesale merchant rate table was revised in 2024.
Violations & Fines
A junk or secondhand paper dealer who transacts business without the wholesale merchant's license Sec. 20-693 requires is subject to Henrico's general penalty clause, Sec. 1-13: punishment matches a Class 1 misdemeanor under Code of Virginia § 18.2-11 unless the code specifies a different class, each day of continued operation counts as a separate offense, and the county can suspend or revoke the license on top of any fine a court imposes.
Frequently Asked Questions
Do junk dealers in Henrico need a special license?
Does a recycling drop-off retailer need this license too?
How much is the wholesale merchant's tax for a junk dealer?
Sources & Official References
Other rules in Henrico County
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