Alabama Scrap Metal Dealer Registration — Metal Recycling Requirements

Organized scrap metal yard — Alabama dealers must register with the state before purchasing regulated metals — Alabama scrap metal dealers must register with the Department of Revenue and maintain a $10,000 surety bond.

Alabama regulates scrap metal dealers under Alabama Code Title 40, Chapter 12, Article 9 (Junk Dealers and Scrap Metal Processors). The Alabama Department of Revenue administers dealer licensing, while local law enforcement handles compliance inspections.

Registration at a Glance

Item	Detail
Issuing agency	Alabama Department of Revenue
License name	Junk Dealer / Scrap Metal Processor License
Annual fee	$200 per location
Surety bond	$10,000 required per location
Payment hold	5 business days — all regulated metals
Cash payment	No cash for regulated nonferrous metals
Record retention	2 years
Background check	Required for all owners and operators

Alabama's 5-day hold is one of the longest general payment delays in the country — applying to all regulated nonferrous metals, not just catalytic converters. Ensure your payment voucher system can handle this hold period for every copper, aluminum, and bronze transaction.

What Alabama Dealers Must Record

For every purchase of regulated materials, Alabama requires:

Seller's full name and current address
Type and number of government-issued photo ID
A physical description of the seller (height, weight, eye color)
Make, model, color, and license plate of the seller's vehicle
Description of materials purchased (type, weight, value)
Date and time of transaction

Vehicle description requirement: Alabama's requirement to record the seller's vehicle make, model, color, and tag number is more extensive than most states. Ensure your transaction forms or software include these fields.

Alabama Prohibited Items

Alabama dealers may not purchase: manhole covers and utility access covers, guard rails or highway barrier components, cemetery materials (bronze vases, markers, plaques), traffic signs, railroad hardware, fire hydrant components, utility wire on spools or cut from active infrastructure, or beer kegs bearing brewery trademarks.

Alabama Catalytic Converter Requirements

Alabama's general regulated metals framework covers catalytic converters. In addition to standard ID collection, dealers must: record the VIN of the source vehicle, obtain a signed statement from the seller affirming vehicle ownership, pay by check only (no cash), and retain all documentation for 2 years.

FAQ

Alabama does not have a mandatory statewide electronic reporting system as of early 2025. However, some counties and municipalities have enacted local ordinances requiring reporting through systems like LeadsOnline. Check with your county sheriff's office and city business licensing office for any local reporting requirements that may apply to your specific location.

Alabama licenses renew annually through the Department of Revenue. Renewal notices are sent to your registered business address. The renewal fee is $200 per location. Ensure your surety bond is current at renewal — a lapsed bond results in license suspension. File renewal and bond confirmation simultaneously to avoid any gap in your licensed status.

Verify current Alabama requirements at revenue.alabama.gov. Requirements change — this guide reflects information as of early 2025. Not legal advice.