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Novi, MI Business Licensing & Operations: Secondhand Dealers (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 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?
Yes. City Code Section 27.5-31 requires any owner or operator to obtain and maintain a valid city business license for each separate office or place of business before engaging in secondhand or junk dealing, with a narrow exception for temporary displays at exhibit halls, schools, and similar civic facilities.
How long must a Novi secondhand dealer hold purchased items before reselling them?
Section 27.5-39 requires items, goods, and junk purchased or exchanged to be retained for at least 15 days in an accessible location, tagged with a number matching the electronic transaction record, before the dealer may dispose of or resell them, with limited exceptions for rags, paper, and certain household goods.
Who can a Novi secondhand dealer not buy from?
Under Sections 27.5-26 and 27.5-40, a licensee, owner, or employee may not knowingly buy from anyone under 18, anyone intoxicated or under the influence of a controlled substance, a known thief or receiver of stolen property, or anyone suspected of not owning the item offered.
What is the penalty for violating Novi's secondhand dealer ordinance?
Section 27.5-45 makes any violation a misdemeanor punishable by up to 93 days in jail, a fine of up to $500, or both, plus costs, and the city may also suspend or revoke the business license after seven days' written notice, subject to a hearing before the director of public safety.

Sources & Official References

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