Skip to main content

Salem, OR Business Licensing & Operations: Secondhand Dealers (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified October 2026

Key Facts

License required
Dealer in used merchandise license, SRC 30.010(c)
Who is covered
Junk dealers, pawn brokers and secondhand dealers
Electronic reporting threshold
50 or more transactions per calendar year, daily submission
Holding period
14 days after receipt is reported to the Chief
Chief's hold order
Up to 180 days, oral orders confirmed in 48 hours
Prohibited property
Prescription medications, gift cards, altered-serial items
Civil penalty cap
$2,000 per violation, each day separate

Summary

Salem requires a city license before anyone operates as a dealer in used merchandise, a term that covers junk dealers, pawnbrokers and secondhand dealers. Licensees keep a full record of every article received, pledged or purchased, with seller identification and a thumb print, and report transactions to the Salem Police Chief. Buying prescription medications, gift cards or altered-serial property is a misdemeanor.

Dealer in used merchandise means a junk dealer, pawn broker, or secondhand dealer. ... (a) Except as provided in subsection (b) of this section, every dealer in used merchandise shall make and keep a full, true, and complete record of all articles received, pledged, or purchased. ... (8) If the dealer in used merchandise engages in 50 or more transactions in any calendar year, the right thumb print from the pledgor or seller shall be made using a finger print scanning device acceptable to the Chief of Police. ... (3) If the dealer in used merchandise has less than 50 transactions per year, the dealer in used merchandise shall submit the record of daily transactions to the Chief within three days of the date of the transaction. ... (a) It shall be unlawful for any dealer in used merchandise to knowingly purchase, acquire by pledge, or loan money against any of the following types of property: (1) Prescription medications; (2) Gift cards, in store credit cards, or activated phone cards; or (3) Property with serial numbers, personalized inscriptions or initials or other identifying marks that appear to have been intentionally altered or rendered illegible.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 1).

Full Breakdown

Salem Revised Code 30.005 defines a dealer in used merchandise as a junk dealer, pawn broker, or secondhand dealer. A secondhand dealer is anyone buying, selling or otherwise dealing in secondhand goods, either as a separate business or as a substantial part of another business. Secondhand goods include precious metals and gems, jewelry, collectibles such as trading cards, stamps and coins, antique and used furniture, and computers and computer components. Property conveyed solely by donation is excluded. SRC 30.010 lists the dealer license among the businesses that need one, and SRC 30.020 requires it before the business starts.

The license application asks for the applicant's date and place of birth, a physical description (height, weight, hair and eye color, scars and marks) and every alias or previous legal name. The Director runs a criminal background check on every dealer applicant. Licenses cannot be transferred (SRC 30.035), must hang in a prominent place at the shop (SRC 30.040), and a renewal application is due at least 30 days before expiration or a new license is required (SRC 30.055). The code defines annual as January 1 through December 31, and the fee is three-fourths of the full amount for applications filed July 1 through September 30 and one-half from October 1 (SRC 30.025). The fee itself is set by Council resolution.

SRC 30.200 is the recordkeeping core. Every article gets an entry showing the date, pawn ticket number, amount paid or lent, a description, any marks or settings, the seller's name, address, description and ID type and number, a declaration of ownership, a copy of photo identification, a right thumb print and the seller's signature. A purchase of more than 20 articles from one seller in one transaction can use a general description. A dealer with 50 or more transactions in a calendar year keeps electronic records, takes the thumb print on a scanning device acceptable to the Chief of Police, and submits each day's transactions by the end of business that day. A dealer under 50 transactions can keep paper records and must report within three days, or mail them within two days. All jewelry and scrap platinum, gold and silver must be photographed and produced on request. Books, articles received solely in trade, loan renewals already reported and videotapes, audio tapes, compact discs, records and DVDs under $75.00 per seller per transaction need no record.

Violations & Fines

Knowingly buying or lending against prescription medications, gift cards or altered-serial property (SRC 30.245) is a misdemeanor, as are buying from a person a court has barred from selling (SRC 30.240) and breaking the 14-day hold or a Chief's hold order (SRC 30.255, 30.260). Missing records (SRC 30.250), buying from anyone under 18 (SRC 30.230) and skipping proof of identity (SRC 30.265) are infractions, as is unlicensed operation. Civil penalties reach $2,000 per violation per day (SRC 30.070), appealable to the Hearings Officer.

Frequently Asked Questions

Who has to get a dealer in used merchandise license in Salem?
Any junk dealer, pawn broker or secondhand dealer needs the license before opening. Secondhand dealing counts when it is a separate business or a substantial part of another business, and items received solely by donation do not count as secondhand goods. The Director runs a criminal background check on every applicant, and the license cannot be transferred to anyone else.
How quickly must a Salem dealer report purchases to the police?
A dealer with 50 or more transactions in a calendar year submits each day's record electronically by the end of business, through the system the Chief selects. A dealer with fewer than 50 transactions submits within three days of the transaction, or mails the record within two days. Records are open to the Chief during regular business hours.
How long must purchased goods be held before resale in Salem?
Goods are held without alteration or sale for 14 days after the receipt is reported to the Chief, and they cannot be commingled in a way that blocks identification. The hold does not apply to exempt transactions under SRC 30.200(c) or to redemption by the original pledgor. Police can order a longer hold of up to 180 days.
What property is a Salem dealer forbidden to buy or take in pawn?
SRC 30.245 bans knowingly buying, taking by pledge or lending against prescription medications, gift cards, in store credit cards, activated phone cards, and property whose serial numbers, inscriptions, initials or other identifying marks look intentionally altered or erased. Separately, SRC 30.230 bars buying anything from a person under 18 years old.
What can a person do when police place a hold on property at a Salem dealer?
Within ten days of receiving the hold order, anyone with an interest in the property can file a motion for release with the Municipal Court and serve a copy on the Chief within the same ten days. The court can order release, set a hearing, or remove the hold. The Chief's order stays in effect while the motion is pending.

Sources & Official References

Other rules in Salem

All Salem rules

Compare Salem to another location·View the Oregon business licensing & operations overview

Get notified when Secondhand Dealers in Salem, OR changes

We'll email you the moment we detect a change in the code. No spam, unsubscribe anytime.

We'll never sell or share your email. One-click unsubscribe in every email.

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.