South Bend, IN Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- License fee
- $115 per year from the City Controller
- Resale hold
- 15 days before an item can be resold
- Minor purchases
- Banned from sellers under 18
- Records kept
- 3 years, reported daily to police
- Outdoor display permit
- Separate $40 fee, 8 p.m.-8 a.m. ban
- Penalty
- $200 to $2,500 per violation
Summary
South Bend secondhand dealers need a $115 annual license from the City Controller after a Police Department background review, and must hold every item purchased for 15 days before reselling it. Buying from anyone under 18 is banned, nonprofits and pure consignment sellers are exempt, and violations run $200 to $2,500 per offense.
(b)License required. No person shall engage in the business of a secondhand store without first obtaining a license as required by this section...(d)License fee. The applicant for a second hand store licensed shall pay an annual fee of one hundred fifteen dollars ($115.00) to the Controller...(f)Secondhand Purchased Items to be Held Before Resale by Dealer. All secondhand purchased items, purchased by a dealer, must be held for fifteen (15) days in the dealer's possession, before being resold, exchanged, or altered in any manner...(g)Purchase from minors prohibited. No secondhand store dealer shall receive or purchase any property whatever from a person under the age of eighteen (18) years...(j)Penalty. Any person who violates a provision of this section shall be fined not less than two hundred dollars ($200.00) or more than two thousand five hundred dollars ($2,500.00). Each violation shall constitute a separate offense and be punishable as such.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 65).
Full Breakdown
The application goes to the City Controller and states the applicant's name, address, and phone number, the store's name and address, and the types of materials to be sold; the Police Department reviews the applicant's criminal history and the risk to public safety before the Controller decides. Every dealer must also keep a daily electronic sales report transmitted to the South Bend Police Department's Records Management System, recording the seller's legal name, address, date of birth, physical description, driver's license or government ID number, a photograph of the item and of the seller, and a right thumbprint for each purchase, retaining that data for three years.
Anything bought must be held at the dealer's permanent place of business for fifteen days before it can be resold, exchanged, or altered, and the goods must be available for inspection by the Police Chief or a designee throughout that hold period. Buying from anyone under eighteen is prohibited outright, and nonprofit or charitable corporations, along with businesses that sell exclusively on consignment, are exempt from the licensing requirement. A dealer wanting to display merchandise outdoors, other than boats, trailers, or vehicles, needs a separate $40 outdoor display permit, cannot display between 8 p.m. and 8 a.m., must keep items at least two feet from the sidewalk or right-of-way, and cannot attach anything to a building, tree, fence, or pole; three or more outdoor-display violations in one license term can cost the dealer the underlying license for the rest of the year.
Violations & Fines
Any violation of this section carries a fine of not less than $200 and not more than $2,500, with each violation treated as a separate offense. Buying from a minor, failing to file the required daily electronic sales report, reselling an item before the fifteen-day hold expires, or racking up three or more outdoor-display violations in a single license term can each cost a dealer the license itself, in addition to the fine.
Frequently Asked Questions
How long must a South Bend secondhand store hold an item before reselling it?
What information does a South Bend secondhand dealer have to report on every purchase?
Is a thrift store or consignment shop exempt from this license?
Sources & Official References
Other rules in South Bend
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