The Office of Consumer Protection licenses secondhand personal property dealers.  Submit your application here: 

Second Hand Personal Property Dealers License

Please note that a license application on behalf of a partnership must be applied for by and issued to  all of the partners who are authorized to act for the partnership.  Please complete a partnership addendum  for   each partner authorized to act for a partnership.  You can obtain the Partnership Addendum here:

• Partnership Addendum

Licenses are valid for one year and can be renewed at most 30 days before expiring. Any person who fails to obtain the license is subject to a $500.00 Civil Citation and an Order for Abatement.  Failure to comply with the Order is subject to contempt proceedings.

The following laws govern Secondhand Personal Property Dealers in Montgomery County:

• Chapter 44A, Secondhand Personal Property, of the Montgomery County Code
• Chapter 44A, Secondhand Personal Property, of the Code of Montgomery County Regulations

The OCP has prepared a handy brochure which summarizes the main points of the law.  However, please read the full Code and Regulations (above) for a complete understanding of the County's requirements on dealers.

 

 

Below is a summary of the main dealer requirements.  OCP has created this summary for informational purposes only.  License applicants should review the laws to ensure compliance with all regulations.

Reporting Requirements  ( See § 44A-3 for full reporting requirements)

• A dealer must keep all records and receipts for a minimum of  one (1) year from the date of the latest recorded transaction.
• A dealer must keep an electronic record, in English, of each purchase or receipt by or on behalf of the dealer at the time of the transaction.  
• A dealer must give the Police:
  • electronic notice of each transaction within 24 hours after the transaction; and
  • a  copy of the written record of each transaction within 7 days after the transaction. 

Retention of Secondhand Personal Property  ( See §44A-4 for complete retention requirements)

• A dealer must retain all secondhand personal property purchased or received for 21 days after the record of the transaction is submitted to the Police.
• All secondhand personal property purchased or received by a dealer must be stored at the dealer's business location until 21 days after the record of the transaction is submitted to the Police, or as required by the Police.
• The storage requirements do not apply to a consignee who:
  • operates from a fixed place of business;
  • complies with tagging requirements; and
  • withholds payment for consignments for at least 30 days after each item is received.

Transactions involving minors prohibited.

• A dealer must not buy or receive any secondhand personal property from a person under 18 years of age. 

Inspection by Police; Release of Stolen Property  (See § 44A-7 for complete inspection requirements)

• A dealer must allow the Police to examine the required records, examine any personal property purchased, received, or stored at the business location; and require retention for an additional 30 days after the storage retention period, of any property which the police know or believe to be missing or stolen.
• A dealer must release to the Police an item of secondhand personal property, other than a security or printed evidence of indebtedness, located at the dealer's place of business if the Police have reasonable cause to believe that the item was stolen; the owner of the item or victim of the theft has positively identified the item; the owner of the item or the owner's agent or designee has provided an affidavit of ownership; or the property is involved in an on-going criminal or administrative proceeding. 

Payments.

• Unless payment is $10.00 or less, a dealer must pay for each item of secondhand personal property by check or in-store credit.  Cash can be used for amounts less than $10.00. If a dealer opts for in-store credit, it is good business to disclose this prior to the transaction.

Reporting changes to information.

• If, during any license year, there is a change in the information that a person gave in obtaining or renewing a license, the person must report the change to the Office of Consumer Protection within 30 days after the change occurs and certify that the information given is correct under the penalties of perjury.

Contact Information	Description
Montgomery County Police Department Pawn, Precious Metal and Secondhand Property Unit 100 Edison Park Drive, 5th Floor Gaithersburg, MD 20878 Investigator: Judy Hanger                       T: 240-773-5068 judy.hanger@montgomerycountymd.gov	Provides information on how to properly set up business to meet County's reporting and holding requirements.
Maryland Department of Assessment and Taxation 301 W. Preston Street Baltimore, MD 21201 T: 410 767-1184 T: 800 735-2258 www.dat.state.md.us	Visit the Maryland Department of Assessment and Taxation to: Register your business and establish legal entity Register a trade name
Internal Revenue Service (IRS) 11510 Georgia Avenue Wheaton, MD 20902 T: 202 283-8097 www.irs.gov/businesses/small	Obtain a Federal Employer Identification Number
Comptroller of Maryland Revenue Administration Center Annapolis, MD 21411 Maryland Combined Registration Application	File a combined registration form to establish your tax accounts with the Comptroller of Maryland.
Business License Information System http://www.choosemaryland.org/blis/pages/default.aspx	Licensing and permit information for businesses in Maryland
Montgomery County Circuit Court Montgomery Court License Department 50 Maryland Avenue, Room 111 T: 240-777-9460 Montgomery County Circuit Court	Provides information on business licenses in Montgomery County Maryland.