Novi, MI Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- License required
- Business license under § 27.5-31
- Penalty
- Up to 93 days jail, $500 fine
- Holding period
- 15 days minimum before resale
- Transaction reporting
- Electronic, weekly by Monday noon
- Enforcing agency
- Novi Police Department (public safety director)
- License term
- Expires annually, non-transferable
Summary
Any secondhand dealer or junk dealer operating in the City of Novi must hold a city business license before opening, under City Code Section 27.5-31. The Novi Police Department investigates applicants, requires electronic transaction reporting, and can revoke a license, while violators face a misdemeanor punishable by up to 93 days in jail and a $500 fine under Section 27.5-45.
Except for temporary displays at exhibit halls, banquet centers, schools and other civic facilities, exposition facilities and other similar temporary uses, no owner, or operator shall engage in or carry on the operation of a secondhand dealer, or junk dealer business without first obtaining and maintaining a valid business license issued by the city pursuant to this chapter for each separate office, or place of business conducted by such owner or operator. ... Any licensee, dealer, employee, person, or entity who violates the terms and provisions of this chapter shall be guilty of a misdemeanor, punishable by imprisonment for not more than ninety-three (93) days, or a fine of not more than five hundred dollars ($500.00), or both, plus costs. Any violation may also result in a suspension or revocation of such license as prescribed by statute and as otherwise imposed by the city after notice of such proposed action at least seven (7) days beforehand.
Full Breakdown
City of Novi Code Chapter 27.5, Article III governs secondhand dealers and junk dealers, defined in Section 27.5-30 as any business purchasing, storing, selling, or exchanging secondhand personal property or salvageable junk, excluding scrap processors, automotive recyclers, and clothing resellers whose primary business (over 90 percent of revenue) is clothing. Section 27.5-31 requires an owner or operator to obtain a city business license for each separate office or place of business before engaging in the trade, with an exception only for temporary displays at exhibit halls, schools, or similar civic and exposition facilities.
Section 27.5-32 requires a written application, a nonrefundable license fee, ownership and employee identification, business history, and authorization for the city to investigate the applicant. Under Section 27.5-33, the director of public safety, the Novi Police Department, reviews the application and inspects the premises for compliance with zoning, health, and safety rules before any license issues. Section 27.5-38 requires dealers to record every transaction, including the seller's identification and driver's license copy, and to transmit those records electronically to the police department each Monday by noon; payment may only be made by check or electronic transfer.
Section 27.5-39 requires purchased goods to be tagged and held at least 15 days before resale. Sections 27.5-26 and 27.5-40 bar dealers from knowingly buying from a minor under 18, an intoxicated person, a known thief, or anyone suspected not to own the property. Section 27.5-41 requires fenced storage areas to be kept neat, with stock stacked no higher than two feet below the fence top so police and fire crews retain access. Licenses expire annually under Section 27.5-37 and must be renewed for a fee set by council resolution.
Violations & Fines
Operating a secondhand or junk dealer business in Novi without a license, or violating any provision of Chapter 27.5, Article III, is a misdemeanor under Section 27.5-45, punishable by up to 93 days in jail, a fine of up to $500, or both, plus costs. The city clerk can also suspend or revoke the business license after seven days' written notice, though the licensee is entitled to a hearing before the director of public safety and a right of appeal.
Frequently Asked Questions
Does Novi require a license to run a secondhand or junk dealer business?
How long must a Novi secondhand dealer hold purchased items before reselling them?
Who can a Novi secondhand dealer not buy from?
What is the penalty for violating Novi's secondhand dealer ordinance?
Sources & Official References
Other rules in Novi
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