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Secondhand Personal Property

In Montgomery County, the Secondhand Personal Property Law helps protect everyone when buying or selling used items.

See businesses with Secondhand Personal Property licenses.

When do you need a license?

If you are in the business of buying, receiving, or selling secondhand personal property (used items) in Montgomery County, you must get a Secondhand Personal Property Dealers License from the Office of Consumer Protection. This also includes anyone working as an auctioneer.

Who is exempt from licensing?

Exemption Request Form (PDF)

• If you only buy personal property at a public sale, you are exempt from needing a license.
• Charitable organizations may apply for an exemption from licensing and reporting rules. If they only sell items donated to them, they are automatically exempt.

What is Secondhand Personal Property?

Secondhand personal property includes most items that have been used before and are being sold again.

The following items are not considered Secondhand Personal Property:

• personal property purchased at a public sale
• items of personal property that do not include a firearm that are offered for sale only on residential property and are:
  • owned by a resident of the property; or
  • part of the estate of a deceased immediate past resident of that property
• items of personal property that have a resale value below $75.

How to apply for a license

Licenses are valid for one year and can be renewed up to 45 days before they expire.

To obtain a Secondhand Personal Property License, follow these steps:

1. Complete an online application on the Office of Consumer Protection's website.

   • If you apply on behalf of a partnership, each partner must be listed and must fill out a Partnership Addendum (PDF).
   • If you apply on behalf of a corporation or LLC, list the president as the applicant.

2. Submit a registration fee payment of $50.00.

   • You may pay by credit card during your application submittal or by check.
   • If you pay by check:
     • Make the check payable to "Montgomery County, Maryland".
     • Send the check to:
       Business Education and Registration (BEAR) Unit
       100 Maryland Avenue, Suite 3600
       Rockville, MD 20850

Required books, records, and reporting requirements

As a dealer, you must keep certain records and follow reporting requirements:

1. Record Keeping:
   • You must keep all records and receipts related to your transactions at your business location for at least one year from the date of the latest transaction.
2. Electronic Records:
   • You need to maintain an electronic record of each purchase or receipt in English. This record must include:
     • The name, date of birth, address, race, sex, physical description, and signature of the person selling the item.
     • The driver’s license number or other proof of identification of the seller.
     • The date and time of the transaction.
     • The name and signature of the person making the record.
     • A full physical description of each item, including details like shape, size, color, serial numbers, and any identifying marks.
     • The amount paid for each item.
3. Reporting to Police:
   • You must notify the Police about each transaction:
     • Send an electronic notice within 24 hours after the transaction.
     • Provide a copy of the written record within 7 days after the transaction.

Retention of secondhand goods

Generally, when a dealer buys or receives secondhand personal property, you must:

• Keep the items for 21 days at your business location after you report the transaction to the Police.
• Tag personal property with the transaction ID. Items purchased in bulk may be tagged in bulk.
• Store the items at your business location during this time.

The requirement to store items does not apply to businesses that:

• Operate from a fixed location; and
• Comply with the tagging requirements; and
• Withhold payment for consignments for at least 30 days after each item is received.

Frequently asked questions

1. Can I buy items from someone under 18?

No, dealers cannot buy or receive secondhand personal property from anyone under 18 years old.

2. What if I change my business information?

If your information changes during the license year, you must report it to the Office of Consumer Protection within 30 days.

3. Can I pay cash for used items?

You can pay cash for items costing $10 or less. For higher amounts, you must use a check or store credit.

4. What happens if the Police want to check my records?

You must allow the Police to inspect your records and the items at your business. If they believe any items are stolen, they can take them for further investigation.

5. Where can I find more information?

You can find additional information by reading the Secondhand Personal Property law and Regulations, or by contacting the Office of Consumer Protection at 240-777-0311.

6. How do I report secondhand personal property transactions to the Police?

Contact the Police Department’s Pawn, Precious Metal and Secondhand Property Unit at 240-773-5065 or [email protected] for further information.

How do I submit a registration fee payment to the Office of Consumer Protection?

Payment can be submitted via credit card during your application submittal or by check.

Make checks payable to "Montgomery County, Maryland". Mail checks to
Business Education and Registration (BEAR) Unit
100 Maryland Avenue
Suite 3600
Rockville, MD 20850