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Second Hand Dealer

Pursuant to Section 45-66(a) of the Denver Revised Municipal Code, a secondhand dealer is “any person whose business is that of engaging in selling or trading secondhand property, or whose business is selling new goods, but who buys and sells secondhand articles, goods, wares, or merchandise of the same type or class as the new goods sold.”

The term also includes any person who sells or trades secondhand property through flea markets or other nonpermanent locations.

It is unlawful to conduct a secondhand dealer business without a license.

No person licensed as a secondhand dealer shall, during the period of the license, receive or hold a license or carry on the business of a pawnbroker, automobile parts recycler, or a junk dealer.
 

How to Get a Business License

Determine Your Business Type:
  • Sole proprietor
  • Partnership
  • Corporation or Limited Liability Corporation (LLC)

If you need assistance creating your business, contact the Denver Office of Economic Development or visit their website for more information.

License Will Be Issued When:

• All required documents are completed and submitted to Excise & Licenses.

• Background check is accepted and approved.

• Fees are paid in full.

• All inspections are completed.

Pawnshop Detail:

• All licenses will designate a specific address/location where business shall be conducted.

• It is unlawful to conduct business in any other location.

• Additionally, a sales tax license must be obtained from the Treasury Division.

Secondhand Property Definition and Holds:

• Items which fall under the definition of “Secondhand Property” can be found under D.R.M.C. Sec. 45-66(b).

• Dealers must have their property in or upon their licensed location for at least 10 days before they can offer for sale, sell, or dispose of it. For items deemed exceptional under CRS 18-16-106 (jewelry, etc.), the hold is 30 days.

Consignment:

• The Colorado Department of Revenue states that “regardless of whether the retail customer knows that inventory is not owned by the vendor, the vendor is (1) the retailer of the property and (2) liable for the tax due on the retail sales.”

Recording of Transactions:

• Every secondhand dealer must make a record of each sale or trade of secondhand property made by him, his agent, or any person acting on his behalf.

• This record must contain all forms and information found in D.R.M.C. Sec. 45-89 (a). These forms can be obtained through the Denver Police Department.

• The dealer must keep a copy of the record for at least one year, and must provide a record to any peace officer for inspection within a reasonable time.

• Any dealer of new goods who is a retailer and sells such goods at a non-permanent location (i.e. flea market) must keep records for a period of 3 years, and all records must be available for inspection by an agent of the City and County of Denver within a reasonable period of time.

It is unlawful to violate any of these provisions.

A Zone Use Permit is required before obtaining a Second Hand Dealer License. 

A use permit is a document granting the applicant/owner of a lot, building, or structure permission for the requested use of the land. "Use" can be defined as any activity, occupation, business or operation transacted in a building or on a lot/tract of land.

You can use the resources on the Internet to plan ahead before you lease or buy property and before you apply for your business license.  Follow the steps below to learn more about the approved zone uses for the address where you want to locate your business.  Start on the  Find Your Zoning page.

  1. Enter the desired address.  Click Search.
  2. Note the Zone District.
  3. Click on the + to Expand for more information. 
  4. Note the Neighborhood Context.
  5. Click on the link for the Zoning Code or in Former Chapter 59.
  6. Click on the Article # for the Neighborhood Context noted above.
  7. Open the document and scroll to the "Use" tables at the bottom of the document.
  8. Find the "Use" category in the left column and the Zone District in the columns to the right.
  9. The code in the intersecting square represents the permitted use.  (There is a key to the codes at the top of every page.)

Ultimately, the zone use permit for your business license must be approved and issued by the Zoning department.  Learn more about the Denver Zoning Code or visit the Zoning Office.

 

Applying for a Zone Use Permit

 

Office Hours and Location

General Hours:  8:00 a.m. - 4:00 p.m.

Webb Municipal Office Building

201 W. Colfax Avenue, 2nd Floor


Phone

All City Services:  (720) 913-1311

General:  (720) 865-3000

 

Email

developmentservices@denvergov.org

Application Fee:  $200.00

License Fee:  $85.00

CBI Name Check:  $6.85 (Cannot be more than 7 days old)

Please do not include the $6.85 on a check with the license and application fees. You must pay for your CBI Name Check with a debit or credit card on the computers in the lobby or you can obtain from your home/office computer. Please print the results to turn in with your application.  

Fees can be paid with cash, check,  money order or credit card if paid in person.  Checks should be made payable to the Manager of Finance. Credit card payments cannot be accepted through the mail. 

You must have an Excise and Licenses issued Inspection Notice for the following agencies before trying to schedule inspections. The only way to get an inspection notice from our agency is to come in with all of your required documents, pay your fees and then we hand you the inspection notice. Once all inspections are complete, we will issue the Second Hand Dealers license.

  • Development Services (720) 865-2982
  • Denver Fire Department (720) 913-3474
  • Denver Police Department Pawnshop Detail (720) 913-6211 or (720) 913-6232

Once your inspections are completed and they have been approved electronically, come back to the Department of Excise and Licenses office.  Your license will be issued when the following actions are taken: 

  1. All documents required for the license are complete and submitted to the office.
  2. The background check is accepted and approved.
  3. Fees are paid in full.
  4. Inspection notice has been completed.

Renew a Business License

Renew in Person
Come to the Department of Excise and Licenses office.

Request a renewal for your business license.

Once all documentation is complete and background check (if required) is approved you will be issued a payment voucher.

Take the payment voucher to the cashier and pay the renewal license fee.

Return to the Department of Excise and Licenses office with your receipt for payment.

Your business license will be printed.

 

Renew by Mail
You can mail in your license renewal along with a check made payable to the Manager of Finance for the total city fees due. Be sure to include your Business File Number (BFN) on your check.

Office Hours and Location
8:00 a.m. - 4:00 p.m.
Webb Municipal Office Building
201 W. Colfax Avenue, 2nd Floor

Mailing Information
Department of Excise and Licenses
201 W. Colfax Ave Dept. 206
Denver, CO 80202

Licenses must be renewed on or before the expiration date to avoid penalty fees.

90 Day Grace Period

There is a 90 day grace period from the expiration date during which licenses can be renewed by paying for the license fee and a penalty fee.

First 30 days of grace period:  20% penalty fee

Days 31 - 90:  50% penalty fee

After 90 days:  Licensees will be required to apply for a new license

 

  • Department of Excise and Licenses inspectors will attempt to locate and notify business license holders of the approaching expiration date.  However, failure of an inspector to notify a delinquent licensee that its license has expired does not excuse the licensee from any applicable late penalty.

 

Municipal Code

Denver Revised Municipal Code

Definition 7-10, 7-12 

Requirements 7-26

Fees 32-48.5

Plan Extra Time!

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Inspections and paperwork can take longer than you expect. Plan extra time to get your license.