Sherman, TX Business Licensing & Operations: Secondhand Dealers (2026)

Article 4.07 of the Sherman Code of Ordinances regulates dealers in used goods. A secondhand dealer is anyone who collects, handles, buys, trades or sells used clothing, watches, jewelry, precious metals and coins, luggage, musical instruments, appliances, firearms and similar used goods handled by pawnbrokers. A junk dealer handles items such as rubber, rope, used bottles, used plumbing and electrical fixtures, bicycles, and automobile parts and tires. Goods received as a pledge by a licensed pawnbroker are exempt (§ 4.07.002).

Section 4.07.041 requires an annual license before any dealer transacts business in the city, and § 4.07.043 caps a license at one (1) year with no vested or property right. The application goes to the chief of police, signed and verified by the person, by each partner, or by the chief executive officer of a corporation, and it states the applicant's name, age, residence, trade name and business address. Denial is mandatory for false or misleading statements, an applicant under eighteen (18), or a felony that directly relates to the licensed occupation (§ 4.07.044). The license fee is set by ordinance and paid to the director of finance, and the bond is $1,000.00 with a surety company authorized in the state (§ 4.07.050).

Operating rules follow the license. Each purchase needs a written report with description, serial number, price, seller identity and thumbprint, and reports are kept two (2) years and open to police inspection (§ 4.07.003). Goods must be held in original form for ten (10) days before resale, except scrap metal, tinfoil, bones, rags and bottles (§ 4.07.005). Purchases from minors need a parent's or guardian's signed written statement (§ 4.07.007). A denied applicant can appeal to the city council within ten (10) days, and the council must grant a hearing within thirty (30) days (§ 4.07.045).