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Madison County, IL Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

Exempt: used vehicles
Cars, motorcycles under IL Vehicle Code
Exempt: scrap metal buyers
Not covered by chapter
Exempt: auction houses
Not covered by chapter
Reporting deadline
By end of each business day
Report language
English only
First violation fine
$500, Class A misdemeanor

Summary

Secondhand dealers in Madison County must register with LeadsOnline and report every purchase, sale, trade or exchange of used goods daily, though the chapter exempts used-vehicle sales, scrap-metal buyers, auction houses and charitable resale donations.

These county ordinances apply to unincorporated areas of Madison County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

SECONDHAND DEALER. Any person or entity, who, within Madison County, Illinois, as a business, engages in the purchase, sale, trade, barter, or exchange of secondhand goods, wares or merchandise; or any person who keeps any store, shop, room or place where secondhand goods, wares or merchandise of any kind or description, are bought, sold, traded, bartered, recycled or exchanged is defined as a secondhand dealer within the meaning of this chapter; provided, however, that this chapter shall not apply to bona fide trade or turn-ins of secondhand goods, wares or merchandise or other good where no cash is transferred or paid by the merchant, or to auction houses or to the transaction of any property that it titled and of record with a state or the federal government, or entities/individuals engaged in the purchasing of scrap metals.

Full Breakdown

Chapter 78 covers secondhand dealers alongside pawnbrokers. 02 defines SECONDHAND DEALER broadly: any person or entity who, as a business within Madison County, engages in the purchase, sale, trade, barter or exchange of secondhand goods, wares or merchandise, or who keeps any store, shop, room or place where such goods are bought, sold, traded, bartered, recycled or exchanged. The same section carves the definition back, providing that the chapter does not apply to bona fide trade-ins where no cash changes hands, to auction houses, to titled property of record with a state or federal government, or to entities purchasing scrap metals.

com and upload transaction data at least daily: the seller's name, address, date of birth and photo ID, the transaction's date and time, and a description and photograph of each item, with extra detail required for watches and jewelry. 04 requires that report to be filed by the end of each business day the dealer is open, in English, with each visit by the same person on a different date treated as a separate transaction that cannot be combined and reported collectively. 05 further exempts the purchase or sale of used motor vehicles, motorcycles and motor-driven cycles as defined under the Illinois Vehicle Code, and charitable organizations accepting donated goods for resale as a fundraiser.

Violations & Fines

Under Section 78.03(F), a secondhand dealer's failure to strictly comply with Chapter 78's reporting requirements is a Class A misdemeanor, carrying a $500 fine for a first violation and $1,000 for each subsequent violation, with every day the violation continues counted as a separate offense.

Frequently Asked Questions

Is a scrap metal buyer treated as a secondhand dealer in Madison County?
No. Section 78.02 expressly excludes entities or individuals engaged in purchasing scrap metals from the SECONDHAND DEALER definition, so Chapter 78's LeadsOnline reporting duty does not reach them.
Do secondhand dealers have to report used car sales?
No. Section 78.05 exempts the purchase or sale of used motor vehicles, motorcycles and motor-driven cycles, as those terms are defined in the Illinois Vehicle Code, from Chapter 78's reporting requirement.
How quickly must a secondhand dealer report a transaction?
Section 78.04 requires the dealer to report and upload the required information to LeadsOnline by the end of the business day on which the transaction occurred, and each visit on a different date must be reported as a separate transaction.

Sources & Official References

Other rules in Madison County

All Madison County rules

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