Reading, PA Business Licensing & Operations: Secondhand Dealers (2026)

Pennsylvania's regulatory framework for secondhand dealers operates on two parallel tracks. (1) Pawnbrokers are licensed under the Pawnbrokers License Act of 1937 (63 P.S. §281-1 et seq.), administered by the PA Department of Banking and Securities. Pawnbrokers must post a $5,000 surety bond, charge interest within statutory limits, keep detailed loan records, and provide a redemption period of at least 1 month before sale. (2) Precious-metals dealers (gold, silver, platinum buyers; coin shops; jewelers buying scrap) are regulated under the Precious Metals Sales Act, 73 P.S. §1932 et seq. Dealers must register with the Pennsylvania State Police using Form SP4-302, hold purchased items for a minimum of 7 days at the registered premises before resale or melt, maintain transaction records (seller ID, description, price, photograph) for at least 4 years, and submit weekly transaction reports to the State Police and to the local police department of jurisdiction - in Reading, the Reading Police Department. The seller must produce a government-issued photo ID and sign a sworn statement of ownership. Reading does not have a stand-alone municipal pawnshop ordinance, but every secondhand dealer must hold a Reading Business Privilege License from the City Treasurer and pay the Business Privilege & Mercantile Tax. Reading Police use the PA state precious-metals database and the LeadsOnline web service for stolen-goods detection. Adult-oriented or used-goods stores in Reading must also clear Zoning Hearing Board approval where the use is conditional.