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Tempe, AZ Business Licensing & Operations: Secondhand Dealers (2026)

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

Key Facts

License required from
Financial Services Director, issued annually
Kiosk exemption
Automated buyback kiosks excluded from definition
Media exemption
Books, CDs, DVDs, software exempt from article
Under-$50 exemption
Reporting waived for most items under $50
Holding period
20 days before resale (§ 16A-4)
Civil sanction
Up to $2,500 per violation (§ 16A-26(f))

Summary

Tempe requires anyone buying, selling or trading secondhand goods, jewelry or precious metals to hold an annual license from the Financial Services Director. Automated buyback kiosks are exempt from the definition entirely, while licensed shops must report most transactions to police and hold items 20 days before resale.

Secondhand dealer means any person(s) engaged in conducting, managing or carrying on the business of buying, selling, trading or exchanging, or otherwise dealing in secondhand goods, wares, merchandise or articles, coins, jewelry, precious metals, semiprecious stones and similar items, whether such business is the principal or sole business so carried on, managed or conducted or is merely incidental to, in connection with or a branch or a department of some other business. ... Person(s) operating an automated kiosk shall not be considered a secondhand dealer. ... (a)It shall be unlawful for any person to act within the City as an auction house, scrap dealer, pawnbroker or secondhand dealer without first obtaining a license to do so from the Financial Services Director or their authorized representative.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: City Code: Supplement 33 Update 4 | Zoning and Development Code: Supplement 11 Update 2).

Full Breakdown

Section 16A-1 defines a secondhand dealer broadly as anyone 'engaged in conducting, managing or carrying on the business of buying, selling, trading or exchanging, or otherwise dealing in secondhand goods, wares, merchandise or articles, coins, jewelry, precious metals, semiprecious stones and similar items,' whether that is their main business or just a department of another one, and whether conducted at a fixed location or on a transitory basis within the City; the same section carves out anyone 'operating an automated kiosk' from the definition entirely.

Section 16A-26(a) makes it 'unlawful for any person to act within the City as an auction house, scrap dealer, pawnbroker or secondhand dealer without first obtaining a license,' issued annually by the Financial Services Director at a fee set by City Council resolution. Section 16A-2(c) exempts activities involving books, clothing, phonograph records, tapes, CDs, DVDs and computer software from the licensing article altogether, and § 16A-3(b) exempts the same media categories, plus items purchased for under $50, from the 24-hour police transaction-report requirement, though serial-numbered electronics, firearms, jewelry, bicycles and power tools stay reportable regardless of price.

Reported items are then subject to the 20-day resale holding period in § 16A-4, and owners and managers must submit to fingerprinting under § 16A-9 before the license issues.

Violations & Fines

Operating as an unlicensed secondhand dealer, or skipping a required transaction report or holding period, carries a civil sanction of up to $2,500 per violation under § 16A-26(f), absent a documented bona fide clerical or computer error. Three or more convictions for violating this article or a related state statute within 12 months triggers a mandatory six-month license suspension under § 16A-28, appealable to the City Council within 10 days.

Frequently Asked Questions

Does a secondhand clothing or bookstore need a Tempe dealer license?
No. Section 16A-2(c) exempts activities involving books, clothing, phonograph records, cassette tapes, CDs, DVDs and computer software entirely from the licensing article, so a used bookstore or thrift shop dealing only in those categories does not need the Section 16A-26 license.
Do automated cash-for-gold kiosks need a Tempe secondhand dealer license?
No. Section 16A-1 specifically states that a person operating an automated kiosk is not considered a secondhand dealer, removing kiosk operators from the licensing, reporting and holding-period requirements that apply to storefront secondhand dealers under this article.
How long must a Tempe secondhand shop hold purchased items?
Twenty days from the date the shop reports the transaction to the Chief of Police, under Section 16A-4, before the item can be resold or exchanged. Items purchased for under $50, other than serial-numbered electronics, firearms or jewelry, are exempt from the reporting trigger.

Sources & Official References

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