Sioux Falls SD new Ordinance in effect

I do not have all the information yet but I just found out that Sioux Falls has passed an ordinance that effects pawnbrokers, precious metal dealers, gems dealers and gun dealers that extended the reporting and holding requirements for purchasing " secondhand goods". I will be calling tomorrow to see about getting a copy of the new ordinance to find out how it effects the sale or purchase of coins, currency, bullion, and coin shows and how long you have to hold the items you buy in the city of Sioux Falls. The city has given a number to call if you would like a copy of the ordinance. 605-367-8080 I hope this does not stop the coin dealers or shows in this area of South Dakota. Jim

 

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Just curious. Why do you think they did this?

 

They want all second hand items put in the national data base to see if they are stolen. What bothers me is can a dealer come to Sioux Falls for a coin show with his coins, ect. and sell them or does he have to report them to the police two weeks before hand before selling them. I know that sounds stupid but when it comes to elected officials I expect stupid more and more. And if you buy a coin at a show can you sell it or do you have to hold the coin for two weeks. With the bullion market the way it is I would not want to hold gold or silver any longer than I have to.

 

I figured as much. I can understand the Pawn Shop requirement to "report" but I can't fathom the "dealer' end of it. If these folks (politicos) were so concerned then why are they doing this now? Why not years ago?
Been a rash of robberies and break in's in the area of late?

 

I think crime is up all over.

 

Most definitely. A local dealer (Brooklyn, NY) was killed in a robbery just this past Tuesday.

 

Hard times REVEALS character or lack of same. Those who lack character show it when times are hard. Of course, good times enable those without character to parade it around and gloat about it.

 

Perhaps there is a large fine/penalty for not doing so if someone buys it from you ( or dealer) and then finds it was stolen goods.

 

Unless is has something to do with sales and goods taxing?

 

Here is the new law:
(a) All pawnbrokers, secondhand good dealers, gun dealers, and dealers in precious metals or precious gems within the city shall keep a record in English of all loans made, of all articles received by them as security, on consignment or by purchase, and of all other transactions where an item is received for value by the regulated business, and shall make and maintain, in a manner prescribed or approved by the chief of police, a record of all regulated transactions. Said records are to be completed at the time the regulated transactions takes place.

(b).Such records shall specifically identify each article purchased or received, and if available, the manufacturer's name, style, model number, engraved initials, and other identifying marks except that coins may be described only by the number of each denomination and face type purchased. Such record shall also include the date of purchase, the amount paid for the article, the name and address of the person from whom the article was purchased or received, and the person's non-expired driver's license number and state of issuance, or if unavailable, the identifying number from at least one form of non-expired government-issued identification, and any other information required by the chief of police.
(c) A copy of the records required shall be provided in the manner prescribed by the chief of police into the possession of the chief of police within seven days from the date of purchase or receipt.
Holding Period For Purchased Articles:
Any item purchased or received by a pawnbroker, secondhand goods dealer, gun dealer, or dealer in precious metals or gems shall be held on the licensed premiscs of the dealer and shall not be offered for sale , sold, disposed of, or altered from the form in which it was received for a period of fourteen calendar days from the time the required records are received by the city police or its designee.

The Ordinance is 8 pages long with a lot more than I listed. There is also a $25 per year fee to buy coins and HOLD ORDER if a law enforcement officer may place on property up to 45 days.

 

But you can't legislate good character!

 

Sioux Falls is not a large town, I suspect the Pawn shops will move just outside of city limits.

 

Its the largest town in South Dakota and has some great coin shows. I hate to see any new laws that hurt the hobby of coin collecting.

 

Typically these laws regulate PURCHASES, or loans where the items are used as collateral. (And the above listing of the ordinance reflects that,) So dealers coin come in to the area for a show and sell what they brought with them, but any purchases made would be subject to the reporting and holding requirements. No reselling newps.

These laws are typically passes due to increased robberies an the selling of stolen gold and silver from said robberies and are nore commonly passed as high precious metal prices encourage more robberies to steal gold and silver. There was a rash of similar laws back in the 1980's cause but the PM run up at that time.

These laws tend to be local ordinances and actually do more damage to the local business than they do toward stopping the PM fencing. The locals tend to have to follow the laws while out of towners can float in and either ignore the law or pay it some lip service , then leave town sell the material and change the name of the business so they can't be traced. Typically the people who are to administrate the ordinance don't work on the weekends so buyers can come in of dealers come in for a show and be gone before the administrators even know they were there. (Similarlly for sales tax compliance. The people who are supposed to come in and make sure the dealers at a show have their sales tax forms don't work weekends. Years ago, I think during the 1991 recession, for awhile the tax people DID come around to the coin shows to make sure the dealers were collecting the sales tax. At a show in NJ they actually closed off a dealers table with police tape and escorted him from the floor because he didn't have his sales tax paperwork for the state.)

 

Here in South Dakota the forms for sales tax have to be handed out by the show chairman. And the show chairman is required to give a list of all dealers that attend the show to the State Dept. of revenue. And as far as that they do not work weekends is a bunch of BULL, as the show chairman they check myself at our show on Sat. last year in September.

 

With this and the sales tax exemption being repealed might make for major changes in coin business there.

 

Yes, that's what I am worried about. We are a GREAT state but we do not have that many shows and all the major shows a quite a distance from us. I know South Dakota will never host a major show with a population in the whole state under 1 million but I can DREAM!

 

Always dream big! But seriously, I never thought that So Dak had a population of 812,383. I live in San Diego, which the city has a population now of 1.3 mil, and the county has a population of 3 mil. A wonderment to behold that my city, which is big but not huge (like LA) has more people than another state. BTW I've driven through So Dak and your state is GORGEOUS and amazing.

 

It will hurt your state actually. I know many dealers around there, (I am from Iowa and now live in MN), and one actually told me last week he is bypassing SD shows now. He said too much hassle from your state officials to make your shows worth going to. He actually will be going to a Fargo show, (even fewer people than SD), and continue to go to IA, MN, and NE shows. He will be going to Sioux City, IA shows across the river.

I understand SD doesn't have income tax, but their sales tax guys are getting out of hand. They tried to strong arm my company into registering in the state using some unconstitutional state rulings. I finally had to quote some Supreme Court decisions and basically tell them where they can put their state forms. I gave them our lawyers address and told them to bring it.

Chris

Btw, I do like your state a lot man. There is a lot going for it, you just have some serious Nazis in your sales tax department.

 

I have heard the Fargo show is a great show. Some of my friends go to their show. Is the Fargo show in the spring? I live in the Black Hills and at our show (Sept. 24 & 25 this year ) most of the dealers come from Colorado or Nebraska. We have only one coin dealer from South Dakota sign up to come out of 15 to 25 dealers coming. We do have dealers from Wis., Minn. Iowa, Wyoming, Mont. Neb. and Colorado coming so it should be a great show.