Texas might be a low-tax state, but there are plenty of user and permit fees.
In Longview, fees and permits accounted for $3.4 million of the $55.079 million in the city's general fund during the 2008 fiscal year that ended Sept. 31.
For example, the first stop for businesses wanting to sell secondhand goods in Longview is with the police department, said city secretary Lois McCaleb.
The department handles two kinds of permits for secondhand dealers: one for businesses that deal in precious metals and gems; the other for trading in used general merchandise.
Dealers in secondhand jewelry and other merchandise said they appreciate the involvement of local law enforcement agencies in their businesses.
Kim Prine, the financial and administrative manager for Insta-Cash Pawn Shops, said she welcomes the state licensing and local permits required to run a pawn shop in Texas. Insta-Cash has 12 locations throughout the state, including two in Longview. Because the establishment buys and sells firearms, it also is licensed by the federal Bureau of Alcohol, Tobacco and Firearms.
"It's a great idea that we have to be licensed because it helps eliminate some of the common misconceptions about pawn shops," Prine said. "A lot of people have the idea that pawn shops are where thieves go to unload stolen merchandise, but we actually keep in close contact with local law enforcement agencies and are required to maintain records of all our purchases. You're a lot more likely to inadvertently buy stolen items at a flea market or through an online auction site than at a pawn shop."
The shops either buy an item or make the owner a loan, retaining the pawned item as collateral. About 70 percent of pawned items are later redeemed, she said.
Jewelry is the most commonly item bought and sold at the local stores, with firearms a close second, Prine said. The store also accepts musical instruments, high-end tools and relatively new home appliances such as TVs and stereo systems.
"Buying items from a pawn store can be a good strategy for certain items," Prine said. "These items are used, so they're less expensive than the same things would be brand new, but we've checked them to make sure they're in good condition and offer service contracts, which are things you don't get just buying used items at a garage sale or somewhere like that."
Julie S. Beck, owner of the Coin Investor, also had high praise for local police and sheriff departments.
"I think it's fabulous that the police department and sheriff's office work so closely with us," Beck said. "We're required to get identification from anybody we purchase items from and also to record a description of the items. This is a real theft deterrent."
Beck buys and sells jewelry, coins and silverware. She will place orders for specific items customers request, as well as getting stock from items people bring in.
"The main reason we issue permits to these businesses is to make sure they're keeping a record of their purchases, so that if a person reports as stolen merchandise an item that is available for sale in a pawn shop or other such establishment, we'll know who brought in the items," McCaleb said.
About 1,200 licensed pawn dealers are in state, according to Peggy Roden with the Texas Association of Pawnbrokers.
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Local permits
Longview drew more than $3.4 million in the past fiscal year from people permitted to do a range of activities in the city, from building homes to holding parades to driving taxis.
Two common permits are for secondhand dealing in general merchandise and precious metals and jewelry. The city issued 12 of those permits from Oct. 1, 2007, to Sept. 31. Here?s a look at the permits:
Jewelry and precious metals
Pawn shops and other businesses that buy or trade used jewelry or precious metals must have a $25 annual permit. They also must post a bond of at least $5,000 and keep detailed records about the people from whom they purchase used jewelry or precious metals. They are prohibited from selling, trading or disposing of jewelry or precious metals until at least five business days after purchasing the goods.
Secondhand dealers
Businesses that buy, sell or trade general merchandise are required to have a $25 annual permit from the city. They also must keep detailed records about the people from whom they purchase goods and cannot sell, trade or dispose of goods for at least 14 days after purchasing them. They are not allowed to buy or trade for goods that have had the manufacturer?s identification number, brand name or other identifying marks removed or altered, and they can?t purchase goods from anyone under the influence of alcohol or drugs, or anyone younger than 18 without written consent from a parent or guardian.
The permitting doesn?t apply to nonprofit entities, businesses that only sale or trade used motor vehicles, garage sales conducted at private residences or auctions.
Source: City of Longview
