Agenda - Council Work Session - 10/12/2010

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CITY COUNCIL WORK SESSION Topic Report: Discuss Secondhand Goods Dealer's License Fee By: Jo Thieling, City Clerk Background: The City requires all businesses to obtain a Business Registration Certificate (BRC license) to do business within our City. However, certain businesses are also required to obtain an additional license in order to conduct their type of business in the City. One such business is a Secondhand Goods Dealer. A Secondhand Goods Dealer is defined in Section 26 -680 of City Code as ". . . any natural person, partnership or corporation, either as principal or agent or employee thereof, whose regular business includes selling or receiving tangible personal properties, excluding motor vehicles, previously owned, used, rented or leased. The term "secondhand goods dealer" shall include auction house dealers." The Code provides for exemptions to the meaning of the term secondhand goods dealer. The following type businesses are exempt: (1) The sale of secondhand goods where all of the following are present: a. The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization; b. The items offered for sale are owned by the occupant; c. That no sale exceeds a period of 96 consecutive hours; d. That no more than four sales are held in any 12 -month period; e. That none of the items offered for sale shall have been purchased for resale or received on consignment for purpose of resale. (2) The sale of secondhand books or magazines. (3) The sale of goods at an auction held by an auctioneer. (4) The business of buying or selling only those secondhand goods taken as part or full payment for new goods and where such business is incident to and not the primary business of a person. (5) A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. (6) Goods sold at farmer's market. A new business, Quality Used Appliances, LLC has recently established itself in the City at 6550 Highway 10 NW. The owner, Mr. Chris Berry, states that the business buys 90 percent of its appliances from places like Becker Furniture World and Sears along with All Inc. and, Menards.