Q: When do the new laws take effect?
A: The new laws take effect July 1, 2010 with the exception of a couple items. The annual occupational license tax and deadline to sign up and begin reporting transactions electronically to www.leadsonline.com is will take effect on January 1, 2011. View a compilation of pawnbroker and secondhand dealer laws.
Q: As a business, if I am reporting my transactions electronically to Leadsonline do I still need to fill out a police pawn ticket?
A: Yes. A signature is still required (and fingerprint for pawn stores) for any reportable transaction, therefore the police pawn ticket shall be filled out completely and signed by the customer. The slip then needs to be retained at the business for 24 months. The department is in the process of creating a PDF style ticket to give to the business and will be phasing out the four-part form.
Q: What is the cost for the Annual Occupational License Tax?
A: As a Pawnbroker or Secondhand Dealer a $1000.00 license tax will be due on or before March 1st annually. It becomes delinquent 20 days after March 1st. If you are a Pawnbroker or Secondhand Dealer and conducted less than 1000 transactions the prior year you are exempt from the license tax for the next year.
Q: Are transient or out of state gold buyers required to pay an occupational license tax?
A: Yes. A $500 license tax will be assessed to businesses conducting 1-2 shows in a calendar year. A $1000 license tax will apply if they conduct 3 or more shows in a calendar year.
Q: When are the $1.00 transaction fees due?
A: Transactions will be totaled quarterly and the fees shall be due and payable on the 20th day of April, July, October and January and will be based on the number of reports submitted to the City during each quarter. The first quarterly fee for 2010 is due on October 20, 2010 and shall include all transactions occurring between July 1 – September 30, 2010.
Q: What is the definition of a transaction report that is subject to the $1.00 fee?
A: The pawning, buying, trading or consigning of any items required to be reported under TCC 7-98, up to 3 items per ticket/transaction.
Q: If I have questions about my Business License, the fees and/or taxes, who can I contact?
A: Contact the City Licensing Department at 791-4566 or via e-mail firstname.lastname@example.org. All other general pawn inquiries can be directed to the TPD Pawn Unit at 520-791-5171.
Q: What changes have there been to items that are required to be reported?
A: Pawnbrokers are required to report all items by law. Secondhand Dealers shall report all items listed under TCC 7-98 to include items bearing a serial number or owner applied number, any good or article with a fair market value over $100.00 or any combination of goods or articles that have a fair market value of $50.00. Secondhand Dealers are not required to report books, furniture or CDs.
Q: I'm a Secondhand Dealer. How will the new City of Tucson pawn ordinance affect my business?
A: A licensing tax of $1000.00 if your business does more than 1,000 transactions in a calendar year. In addition, a $1.00 transaction fee applies for all transactions that fall under the required reported items as explained in the previous question.
Q: Where do I obtain transaction slips?
A: The current four-part dot matrix slips will still be available by calling the TPD Pawn Unit at 520-791-5171. A new PDF style transaction slip is being developed that can be used on regular printers. Once this is completed the slip will be emailed to all businesses that would like to use it.
Q: Is there a minimum or maximum amount of transaction slips I can have?
A: No. The amount of slips distributed will be based on the request from the business and the availability of slips at the time.
Q: My business includes buying and selling items online. How does the ordinance apply to me?
A: The ordinance only applies to transactions taking place at the physical location of the business and/or business license location.
Q: Are quarterly transaction totals counted by each item on a transaction slip?
A: No. The current law allows for 3 reportable items per slip/transaction. This portion of the law has not changed. Quarterly totals are counted per slip/ transaction not per item. As has been the law, items that are same and not uniquely identifiable can still be counted as one item (i.e. "6 plain gold bands").
Q: How and where do I pay the annual occupational license tax?
A: TPD and the Business License Section will determine which businesses are subject to the $1,000 occupational tax in January of each year. A renewal form will be sent in February. For proper credit, the renewal form should be returned to City Finance with payment.
Q: How do I pay my quarterly transaction fees?
A: A transaction code will be added to your sales tax return. The transaction fees can be reported and paid monthly at City Finance if you are a monthly sales tax filer, or you may report and pay them quarterly.