From AZSTARNET Dot Com
NEW CITY FEE FOR PAWNSHOPS
All pawnshop transactions will cost a dollar
Brian J. Pedersen Arizona Daily Star | Posted: Friday, July 2, 2010
ALLISON MULLALLY / ARIZONA DAILY STAR
Sandro Sanchez, examines a pawn ticket at Gold & Silver Exchange, 4636 S. Sixth Ave., with shop owner Armin Cicala. Tucson’s updated pawn ordinance went into effect Thursday, adding a $1 fee for all transactions made at pawnshops and secondhand dealers as well as new licensing fees and reporting requirements.
The transaction fee is similar to ones other cities impose, said Sgt. Diana Lopez, a Tucson Police Department spokeswoman.
“Most other cities charge $2 or $3,” said Lopez, noting that TPD had originally asked for a $3 fee but later agreed to the lesser charge.
The fees are expected to offset about half the estimated $700,000 annual cost of TPD’s pawnshop enforcement effort.
Pawnshops are able to list up to three items on each transaction slip, Lopez said.
A local pawnbroker said the new fee will hurt cash-strapped pawn customers – who turn goods in for collateral on short-term loans – when they can least afford it.
“It impacts every transaction, and it’s going to be charged upfront … so if I loan you $20, you’re going to walk out the door with $19,” said Greg Geile, owner of local SuperPawn franchise shops and president of the Arizona Pawn Association.
Geile said the industry had offered to pay licensing fees as an alternative to transaction fees, to spread the costs out more fairly.
But the City Council adopted a recommendation by Tucson police that included both the new transaction charge and new license fee.
Other details of the ordinance:
• Any pawnshop or secondhand dealer that had 1,000 or more transactions in the previous year is required to pay an annual $1,000 occupational license tax, which is due each January.
• Dealers from outside the city must pay a $1,000 fee if they hold three or more shows during a year within Tucson city limits. For dealers holding one or two shows each year, the fee is $500.
• All pawnshops and secondhand dealers must electronically report transactions to TPD. Any item with a serial number or owner-applied number must be reported, regardless of value, while any transaction that exceeds $100 must be reported except for furniture, music and books.
The Police Department has compiled a list of frequently asked questions for businesses and the community. Go to the department’s website at tpdinternet.tucsonaz.gov/FAQ/ pawnfaq.html for more information.
Contact reporter Brian J. Pedersen at bjp@azstarnet.com or call 573-4224.
