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Elizabeth, NJ Business Licensing & Operations: Towing Companies (2026)

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

Key Facts

Mercantile license fee
$300/year tower, $60/tow truck
Max tow fee
$100-$400 by vehicle weight
Storage facility distance
Within 1 mile of city
Insurance required
$1M liability, $1M property damage
Vehicle release hours
7:00 a.m. to 11:59 p.m.
Max penalty
$1,000 fine or 90 days jail

Summary

Elizabeth requires every private-property tower to hold an annual mercantile license, cap towing fees at $100 to $400 by vehicle weight, post warning signs at every lot, and get police clearance before hooking a vehicle. The chief license inspector can suspend or revoke a tower's license after a hearing.

Each tower shall apply for and maintain a valid mercantile license annually, from division of licenses, which shall be prominently displayed at the storage lot or facility. Said mercantile license shall be issued for a year period from May 1 to April 30 of the next succeeding year.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 31).

Full Breakdown

Chapter 5.51 governs towers who remove vehicles from private lots under contract with the property owner. Each tower must maintain a storage facility within one mile of the city, staffed 24 hours a day or with someone on call, and keep a log, copies of towing contracts, and towed-vehicle reports on site (Section 5.51.020). Towers must hold a valid mercantile license running May 1 to April 30, displayed at the storage lot and carried in the tow truck, and cannot get one without $1,000,000 in public liability insurance and $1,000,000 in property damage insurance (Section 5.51.030).

Mercantile license fees are $300.00 annually for a towing company or operator, $300.00 for a licensed storage facility, and $60.00 per tow truck (Section 5.51.090). Lots must post at least two warning signs, sized between 2x3 feet (6 square feet) and 3x5 feet (15 square feet), listing the tower's name, a 24-hour phone number, the storage lot address, the words 'UNAUTHORIZED VEHICLES WILL BE TOWED,' and the towing fee (Section 5.51.040). No vehicle may be hooked, lifted, or removed without a report filed with the city police department first, and police must confirm the vehicle is not stolen or wanted before it can be towed (Section 5.51.050).

Maximum tow fees are $100.00 for vehicles under 6,000 pounds, $250.00 for 6,000 to 14,999 pounds, and $400.00 for 15,000 pounds and up, plus $35.00 for special equipment, with storage fees of $25.00 to $100.00 per day starting after the first 24 hours (Section 5.51.060). Vehicles can only be released between 7:00 a.m. and 11:59 p.m. (Section 5.51.070).

Violations & Fines

A tower found violating this chapter can have its mercantile license suspended or revoked after a hearing before the chief license inspector, and separately faces up to 90 days in the county jail or a fine up to $1,000.00, or both, with each day of a continuing violation counted as a separate offense (Section 5.51.100).

Frequently Asked Questions

How much can a tow company charge to tow my car from private property in Elizabeth?
Section 5.51.060 caps the maximum tow fee at $100.00 for cars and light trucks under 6,000 pounds, $250.00 for vehicles between 6,000 and 14,999 pounds, and $400.00 for vehicles 15,000 pounds and up, plus a $35.00 charge if special equipment is needed.
Does a tower need police approval before towing my car from a private lot?
Yes. Section 5.51.050 requires the tower to file a report with the city police department and get confirmation the vehicle is not stolen or wanted before it is hooked, lifted, or moved, and no vehicle may be towed without that police authorization.
What license does a towing company need to operate in Elizabeth?
An annual mercantile license from the division of licenses, valid May 1 through April 30, which requires proof of $1,000,000 in public liability insurance and $1,000,000 in property damage insurance before it can be issued under Section 5.51.030.

Sources & Official References

Other rules in Elizabeth

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