San Jose, CA Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- Permit required
- City permit plus business license
- Pawnbroker cap
- Six citywide, two per person
- Item hold period
- 30 days before resale
- ID check
- Photo ID plus fingerprint logged
- Vetting authority
- City treasurer and chief of police
Summary
San Jose requires a city permit and business license before anyone can buy, sell, pawn or exchange secondhand goods bearing serial numbers, initials or inscriptions, jewelry and sterling silver included, with every application vetted by the chief of police.
No person shall engage in or carry on the business of a pawnbroker or secondhand dealer except in compliance with provisions of this chapter and a valid permit issued by the city pursuant to the provisions of this chapter. Said permit shall be for a period of one year.B.No person shall engage in or carry on the business of a pawnbroker, secondhand jewelry dealer, or secondhand dealer unless he has a valid business license issued by the City of San José pursuant to the provisions of this chapter, and for which the license fee set forth in the schedule of fees established by resolution of council shall have been paid. (Prior code § 6707.5; Ords. 21285, 21866.)
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 5 Update 3).
Full Breakdown
San José Municipal Code § 6.52.020 makes it unlawful to engage in business as a pawnbroker or secondhand dealer without a permit issued under Chapter 6.52 plus a paid city business license. The city treasurer refers each application to the chief of police for a full background investigation before issuance. Only six pawnbroker permits may be active citywide at once and no person may hold more than two (§ 6.52.050). Permittees must log every transaction, including the seller's photo ID and a fingerprint of the right index finger, in a permanent record, and must hold received items five days for police inspection and thirty days total before resale (§§ 6.52.080, 6.52.120, 6.52.160).
Violations & Fines
Operating without a valid permit and business license violates § 6.52.020. The chief of police can deny, suspend or revoke a permit for fraud, a substantially related conviction, or any violation of this chapter under §§ 6.52.170 and 6.52.180, with appeal rights to the code enforcement commission.
Frequently Asked Questions
Who needs a secondhand dealer permit in San Jose?
How long must a San Jose dealer hold items before resale?
Sources & Official References
Other rules in San Jose
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Secondhand Dealers in Nearby Cities
How other cities in Santa Clara County handle secondhand dealers.