Scrap Metal Dealer Compliance — All 50 States

Know the Rules
Before You Buy

State-by-state scrap metal dealer registration requirements, catalytic converter laws, prohibited items, and seller ID rules — in plain English.

🔍 Look Up Your State ⚡ Catalytic Converter Laws
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Scrap Metal Laws Changed Fast. Most Dealers Haven't Caught Up.

Since 2020, more than 40 states have passed new or updated scrap metal theft prevention laws — tightening requirements for catalytic converter documentation, seller ID retention, payment delays, and prohibited items lists. The penalties for non-compliance range from fines to license revocation to criminal liability. This site compiles what every registered dealer needs to know, organized by state and topic.

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Catalytic Converter Laws by State

40+ states now require VIN documentation, ownership proof, and payment delays for catalytic converters. See what your state requires.

See all state laws →
Before You Buy
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Prohibited Items List

Manhole covers, utility wire, guard rails, and more — every state has items dealers cannot legally purchase. Know your state's list.

Full prohibited items guide →
New Requirement
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Payment Delay Laws

Many states require a mandatory 24–72 hour hold before paying for regulated metals. See which states require it and for what materials.

Payment delay guide →
ID Compliance
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Seller ID Requirements

What ID to collect, how long to retain it, and what format your records must be in — varies significantly by state.

ID requirements guide →
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State Requirements Lookup

Select your state to instantly see registration requirements, fees, renewal period, payment delay rules, and agency contact information.

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Free PDF
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Dealer Compliance Checklist

A printable one-page checklist covering every requirement before you open your doors — registration, recordkeeping, posting, and more.

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Do You Need a License to Buy Scrap Metal?

The short answer: in most states, yes — if you operate as a business that purchases scrap metal from the public. The specific name (license, registration, permit) and the agency that issues it vary by state. Here's the breakdown.

Requirement TypeStatesWhat It Means
Formal registration required~35 statesMust register with state agency before buying any scrap metal; fee typically $25–$500/year
Local permit only~8 statesNo state-level registration; local city or county business permit required
No formal registration~7 statesNo specific scrap dealer registration; still subject to general business licensing

Even in states without formal registration, all dealers must comply with seller ID retention, prohibited items, and payment delay laws where they exist. Full guide →

State-by-State Requirements

Select your state for registration fees, agency contact, payment delay rules, and prohibited items specific to your jurisdiction.

TexasReg Req'd
CaliforniaReg Req'd
FloridaReg Req'd
GeorgiaReg Req'd
OhioReg Req'd
PennsylvaniaReg Req'd
IllinoisReg Req'd
MichiganReg Req'd
TennesseeReg Req'd
VirginiaReg Req'd
ArizonaReg Req'd
WashingtonLocal Only
ColoradoReg Req'd
IndianaReg Req'd
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Complete Coverage

Frequently Asked Questions

In most states, yes. Approximately 35 states require businesses that purchase scrap metal from the public to register with a state agency before operating. The registration may be called a "metal recycling entity license," "scrap metal dealer registration," "secondhand dealer permit," or similar depending on the state. Operating without required registration can result in fines, forced closure, and in some states criminal charges. Use the state lookup tool to find your specific state's requirements.
Beginning in 2021 and accelerating through 2023–2024, over 40 states passed new laws specifically targeting catalytic converter theft by regulating how scrap dealers can purchase them. Common new requirements include: mandatory recording of the seller's vehicle VIN (to verify the converter came from the seller's own vehicle), proof of vehicle ownership documents (title or registration), mandatory payment delays of 24–72 hours, prohibition on cash payment for catalytic converters, and required photo documentation of the converter and seller. See the full catalytic converter laws guide for your state's current requirements.
Every state with scrap metal regulation has a list of items dealers are prohibited from purchasing, typically because they are common theft targets. Common prohibited items include: utility infrastructure (manhole covers, water meter lids, grates), electrical transmission wire (while still on spool or connected to infrastructure), guard rails and highway signs, cemetery materials (bronze vases, markers), and beer kegs with brewery markings. The specific list varies significantly by state. See the prohibited items guide and the prohibited items checker tool.
Most states with scrap metal laws require dealers to collect, record, and retain identification from each seller. The minimum typically required: full name, current address, valid government-issued photo ID (driver's license or state ID), and the ID number. Some states also require a physical description of the seller, a thumbprint, or a photograph. Retention periods range from 30 days to 3 years depending on the state. Some states require electronic submission of this data to a state database or law enforcement portal. See the complete seller ID requirements guide.
Penalties vary by state and offense but are serious. First offenses typically carry civil fines of $500–$5,000 per violation. Repeat offenses can result in license revocation or suspension, business closure orders, and criminal misdemeanor charges. In states with stricter statutes, knowingly purchasing stolen infrastructure metals (utility wire, manhole covers, etc.) can be charged as a felony — particularly if the purchase facilitated significant property damage. See the full penalties guide for state-specific consequences.
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ScrapDealerGuide is an independent informational resource. Laws and regulations change frequently — always verify current requirements with your state's licensing agency before operating. This site is not affiliated with any government agency, ISRI, or industry association.