Paterson, NJ Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- License required
- Yes, before any transaction
- Issuing process
- Police investigation, then Licensing Division
- Item hold period
- 10 days before resale
- License fee
- $250/year or $250/day
Summary
Anyone buying or selling secondhand gold, silver, precious metals, gems or jewelry in Paterson must obtain a license and register with the Chief of Police, who investigates the applicant before issuance.
Each dealer conducting business within the jurisdiction of the City shall obtain a license and shall first register with the Chief of Police, who shall fingerprint and institute an investigation of the applicant's moral character and business responsibility as he deems necessary for the protection of the public welfare. Upon completion of the investigation, which in no case shall take more than 10 days, the Chief of Police shall return the application or a copy thereof to the Licensing Division, accompanied by his recommendations as to whether the license should be issued or denied. If the recommendation of the Chief of Police is to deny the license, the grounds for such recommendation shall be stated. Grounds for recommending denial of a license may include information indicating that the applicant has been convicted of any crime involving moral turpitude, dishonesty, fraud, deceit or misrepresentation. Upon receipt of the recommendation of the Chief of Police, the Licensing Division shall issue or deny the license accordingly. Appeals from the decision of the Chief of Police shall be made in accordance with § 399-3.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4713536; v19 updated 2025-12-16; through 12-16-2025).
Full Breakdown
Paterson requires secondhand dealers - anyone who buys or sells secondhand gold, silver, precious metals, gems or jewelry, even on a single occasion - to obtain a license and first register with the Chief of Police. The Chief fingerprints applicants and investigates moral character and business responsibility, completing the review within 10 days before recommending approval or denial to the Licensing Division. Dealers must keep detailed records of every purchase and sale, including the seller's identification, report transactions to police within 48 hours, and hold purchased items on the premises for at least 10 days before resale, melting or disposal. No transaction may be made with a minor or an intoxicated person.
Violations & Fines
Fines up to $1,000, up to 90 days' imprisonment, or up to 90 days' community service for any violation, with each day of continued violation a separate offense; the license may also be suspended or revoked after notice and hearing.
Frequently Asked Questions
Do secondhand jewelry dealers need a license in Paterson?
How long must a Paterson dealer hold purchased items before reselling?
Sources & Official References
Other rules in Paterson
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