Troy, MI Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- Registration required
- Before conducting business, plus all employees/agents
- New hire registration deadline
- Within 24 hours of hire
- Item retention period
- 9 calendar days, unaltered
- Transaction report to police
- Electronic record within 48 hours
- Paper record retention
- At least 1 year
- Revocation bar
- 5 years after a disqualifying conviction
- Recordkeeping penalty
- Up to 90 days jail and/or $500 fine
Summary
Troy requires every dealer in precious metal, gems and jewelry to register with the City before opening, keep detailed transaction records, hold purchased items nine days, and report electronically to the Troy Police Department within 48 hours of each purchase.
a. Registration. A dealer in precious metal, gems and items must be registered by the City prior to conducting business in the City of Troy. All employees and/or agents of the dealer must also be registered with the City prior to conducting business. Any new employees and agents must be registered within 24 hours of the time of hire. ... 1.5 Retention Period of Precious Items. A precious item received by a dealer shall be retained by the dealer for nine (9) calendar days after it was received, without any form of alteration other than that required to make an accurate appraisal of its value.
Full Breakdown
Chapter 69 of the Troy Code of Ordinances requires a dealer in precious metal, gems and items, along with every employee or agent, to be registered by the City before conducting business; new hires must be registered within 24 hours. ) and the Troy Code. Applicants submit identifying information including a right thumbprint, business details, a signed statement acknowledging Act 95 of 1981, proof of no disqualifying convictions, and proof of proper zoning; a fee is charged per licensed establishment per Chapter 60. 6 conditions (fixed in-state place of business, public searchable website, two-year records, 24-hour police access, non-cash payment held until sale) are exempt from registration, as is a person selling their own precious items.
Every transaction must be recorded in quadruplicate with the customer's name, date of birth, driver's license or state ID number, right thumbprint, item description and price paid, and an electronic copy must reach the Troy Police Department within 48 hours; paper records are kept at least one year and destroyed after one year if no investigation arises. A dealer must retain each precious item for nine calendar days after receipt without alteration beyond what is needed to appraise it, and may not knowingly buy from anyone under 18 or from a known thief without a valid ID check.
Records and items must be open to inspection by the Oakland County Prosecutor, Troy City Attorney, Troy Police, Oakland County Sheriff and Michigan State Police during business hours.
Violations & Fines
Conviction of a misdemeanor under Chapter 69, the Precious Metal and Gem Dealer Act, or MCL 750.535 immediately revokes the dealer's registration and bars operating as a dealer in Troy for five years. Separately, knowingly failing to make a required record entry is a misdemeanor punishable by up to 90 days in jail, a $500 fine, or both, under Section 1.9.
Frequently Asked Questions
Does Troy require secondhand precious metal and gem dealers to register?
How long must a Troy dealer hold a purchased item before reselling it?
What happens if a Troy dealer is convicted of a violation?
Are online buyback or drop-off stores exempt from Troy's registration rule?
Sources & Official References
Other rules in Troy
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