Scrap Metal Laws by State: ID Requirements, Payment Restrictions & Regulations

Selling scrap metal is a straightforward way to earn money from unwanted materials, but every state regulates scrap transactions to some degree. These laws exist primarily to combat metal theft — a crime that costs the U.S. an estimated $1 billion annually, according to the Institute of Scrap Recycling Industries (ISRI). Whether you’re cleaning out a garage or running a regular scrapping operation, understanding the laws in your state keeps you on the right side of the law and prevents unpleasant surprises at the yard.

Universal Requirements That Apply Everywhere

While scrap metal laws vary significantly from state to state, certain requirements are nearly universal across the United States. Before diving into state-specific details, here is what you can expect at virtually any licensed scrap yard in the country.

Photo Identification

Every state requires sellers to present a valid, government-issued photo ID. Acceptable forms typically include:

• State-issued driver’s license (most common)
• State identification card (non-driver ID)
• U.S. passport or passport card
• Military ID (accepted in most but not all states)
• Tribal identification (accepted in states with tribal recognition)

The ID must be current and not expired. Most yards will refuse to transact with an expired ID even if they recognize you as a regular seller.

Transaction Records

Scrap yards are required by law to maintain detailed records of every purchase. As a seller, you will typically need to provide:

• Full legal name as it appears on your ID
• Current address — must match your ID or you may need supplemental proof of address
• ID number (driver’s license number or other ID number)
• Description of materials being sold
• Weight and payment amount
• Date and time of transaction
• Vehicle information — license plate number, and in many states, make, model, and color

These records are maintained by the yard and made available to law enforcement upon request. In many states, yards must submit transaction reports to police daily or weekly.

Vehicle Registration

Most states require that the vehicle used to transport scrap materials be registered and that the license plate number be recorded. Some states go further, requiring the vehicle registration to match the seller’s ID. If you are borrowing a truck or using a friend’s vehicle, check your state’s rules — you may need the vehicle owner present.

ID and Documentation Requirements by State

Beyond the universal photo ID requirement, many states impose additional documentation requirements. These range from thumbprint collection to mandatory photographs of sellers and their materials.

States Requiring Thumbprints

Several states require scrap yards to collect a thumbprint or fingerprint from sellers as an additional layer of identification. This is one of the strongest deterrents against selling stolen metal.

State	Thumbprint Required?	Additional Notes
Alabama	Yes	Required for all transactions
California	Yes	Digital thumbprint stored electronically
Georgia	Yes	Required for regulated metal transactions
Louisiana	Yes	Thumbprint plus photograph
Mississippi	Yes	Required for all nonferrous transactions
Oklahoma	Yes	Required for all transactions over $50
South Carolina	Yes	Digital or ink thumbprint accepted
Tennessee	Yes	Required for all regulated metal sales
Texas	Yes	Required for all transactions

States Requiring Photographs

Some states require yards to photograph the seller, the materials being sold, or both.

State	Photo of Seller	Photo of Materials	Photo of Vehicle
Arizona	Yes	Yes	Yes
California	Yes	No	No
Georgia	Yes	Yes	No
Indiana	No	Yes	No
Louisiana	Yes	Yes	Yes
Nevada	Yes	Yes	No
Ohio	No	Yes	No
Tennessee	Yes	Yes	No

Vehicle Title and Registration States

In some states, if you are selling certain types of metal (particularly automotive parts), you may need to show the vehicle title proving you own the vehicle the parts came from.

State	Vehicle Title Required	Applies To
California	Yes	Catalytic converters, automotive parts
Florida	Yes	Catalytic converters
Georgia	Yes	All automotive scrap
Illinois	Yes	Catalytic converters, auto bodies
Michigan	Yes	Catalytic converters
New York	Yes	Catalytic converters, auto bodies
Ohio	Yes	Catalytic converters
Pennsylvania	Yes	Catalytic converters, auto bodies
Texas	Yes	Catalytic converters, automotive parts
Washington	Yes	Catalytic converters

States With Additional Requirements

A few states have unique documentation requirements worth knowing about:

• Florida: Sellers of air conditioning and refrigeration components must provide a contractor’s license or letter from an HVAC company.
• Illinois: Certain Chicago-area municipalities require a scrap seller’s license for repeat transactions.
• New Jersey: Commercial scrap sellers must register with the state and carry a scrap metal license.
• New York: New York City has separate, stricter requirements than the rest of the state, including a mandatory 5-day holding period.
• Oregon: Sellers must sign a declaration of ownership for all materials.

Cash Payment Restrictions by State

One of the most significant areas of scrap metal regulation involves how sellers get paid. More than 30 states have enacted laws restricting or eliminating cash payments for scrap metal transactions. These laws make it harder for thieves to profit from stolen metal because non-cash payments create a traceable paper trail.

Overview of Payment Restrictions

States generally fall into one of four categories:

1. No cash allowed — all payments must be by check or electronic transfer
2. Cash restricted above a threshold — small transactions may be paid in cash, but larger ones cannot
3. Cash restricted for certain metals — specific metals like copper or catalytic converters cannot be paid in cash
4. No payment restrictions — cash is allowed for all transactions

State-by-State Cash Payment Restrictions

State	Cash Allowed?	Threshold / Restriction	Payment Method Required
Alabama	Limited	No cash for nonferrous metals over $100	Check mailed to address on ID
Alaska	Yes	No restrictions	Any
Arizona	Limited	No cash for catalytic converters	Check or electronic
Arkansas	Limited	No cash over $500	Check
California	No	No cash for nonferrous metals	Check mailed after 3-day hold
Colorado	Limited	No cash for catalytic converters	Check or electronic
Connecticut	Limited	No cash over $50	Check
Delaware	Yes	No restrictions	Any
Florida	Limited	No cash for regulated metals over $300	Check
Georgia	No	No cash for any scrap metal	Check mailed to address on ID
Hawaii	Yes	No restrictions	Any
Idaho	Yes	No restrictions	Any
Illinois	Limited	No cash for nonferrous over $100 in Cook County	Check (varies by municipality)
Indiana	Limited	No cash over $25 for nonferrous	Check or electronic
Iowa	Limited	No cash for catalytic converters	Check
Kansas	Limited	No cash over $100	Check
Kentucky	Limited	No cash for nonferrous metals	Check
Louisiana	No	No cash for any scrap metal	Check mailed after hold period
Maine	Yes	No restrictions	Any
Maryland	Limited	No cash over $500	Check
Massachusetts	Limited	No cash for catalytic converters	Check
Michigan	Limited	No cash over $25 for nonferrous	Check
Minnesota	Limited	No cash over $50 for certain metals	Check
Mississippi	No	No cash for nonferrous metals	Check mailed to address on ID
Missouri	Limited	No cash over $50 for certain metals	Check
Montana	Yes	No restrictions	Any
Nebraska	Limited	No cash over $50 for nonferrous	Check
Nevada	Limited	No cash over $100	Check or electronic
New Hampshire	Yes	No restrictions	Any
New Jersey	Limited	No cash over $25 for nonferrous	Check
New Mexico	Limited	No cash for catalytic converters	Check
New York	No	No cash for regulated metals	Check
North Carolina	Limited	No cash for nonferrous over $100	Check
North Dakota	Yes	No restrictions	Any
Ohio	Limited	No cash for catalytic converters; check for nonferrous over $100	Check
Oklahoma	No	No cash for nonferrous metals	Check
Oregon	No	No cash for any scrap metal	Check
Pennsylvania	Limited	No cash for catalytic converters or nonferrous over $100	Check
Rhode Island	Limited	No cash over $100	Check
South Carolina	Limited	No cash for nonferrous over $25	Check mailed to address on ID
South Dakota	Yes	No restrictions	Any
Tennessee	No	No cash for any scrap metal	Check
Texas	No	No cash for regulated metals	Check or electronic
Utah	Limited	No cash for catalytic converters	Check
Vermont	Yes	No restrictions	Any
Virginia	Limited	No cash over $100 for nonferrous	Check
Washington	Limited	No cash for catalytic converters or over $30 for other metals	Check
West Virginia	Limited	No cash over $100	Check
Wisconsin	Limited	No cash over $100	Check
Wyoming	Yes	No restrictions	Any

What “Check Mailed to Address on ID” Means

Several states require that payment be mailed to the address shown on the seller’s government-issued ID. This means:

• You cannot receive payment on the spot
• You must wait for the check to arrive by mail (typically 3-10 business days)
• Your ID address must be current — if you have moved, update your ID first
• P.O. boxes may not be accepted in some states

This requirement is specifically designed to prevent thieves from using fake addresses. If you have recently moved, update your driver’s license before attempting to sell scrap in these states.

Holding Periods and Waiting Requirements

Many states impose holding periods that require scrap yards to store purchased materials for a set number of days before processing them. During this holding period, law enforcement can inspect the materials and match them against theft reports.

Holding Period by State

State	Holding Period	Applies To
Alabama	3 days	Nonferrous metals
California	3 days	All regulated metals
Connecticut	7 days	All scrap metals
Florida	5 days	All scrap metals (10 days in some counties)
Georgia	3 days	All regulated metals
Illinois	7 days	Catalytic converters (varies by municipality for other metals)
Indiana	7 days	All scrap metals
Louisiana	5 days	All scrap metals
Michigan	5 days	Nonferrous metals
Minnesota	3 days	All scrap metals
Mississippi	5 days	Nonferrous metals
Missouri	5 days	All scrap metals
New Jersey	5 days	All scrap metals
New York	5 days (NYC: 10 days)	All regulated metals
North Carolina	3 days	Nonferrous metals
Ohio	3 days	Catalytic converters; 5 days for other nonferrous
Oklahoma	5 days	Nonferrous metals
Oregon	7 days	All regulated metals
Pennsylvania	3 days	Catalytic converters
South Carolina	5 days	Nonferrous metals
Tennessee	5 days	All scrap metals
Texas	8 days	All regulated metals
Virginia	5 days	Nonferrous metals
Washington	5 days	Catalytic converters
Wisconsin	5 days	All scrap metals

States With No Holding Period

The following states do not require holding periods: Alaska, Arizona, Arkansas, Colorado, Delaware, Hawaii, Idaho, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming. However, individual yards in these states may still hold materials voluntarily.

Catalytic Converter Laws by State

Catalytic converter theft has become one of the most common property crimes in the United States. The precious metals inside converters — platinum, palladium, and rhodium — make them extremely valuable, and a thief can remove one in under two minutes. In response, states have enacted increasingly aggressive legislation, and this area of law is evolving faster than any other aspect of scrap metal regulation.

For more on what catalytic converters are worth and why they are targeted, see our guide to catalytic converter scrap value.

Why Converters Are Heavily Regulated

A single catalytic converter can contain $100 to $800 or more in precious metals, depending on the vehicle. Meanwhile, replacing a stolen converter costs the vehicle owner $1,000 to $3,500. The combination of high scrap value and easy theft has created an epidemic:

• Converter thefts increased by over 1,000% between 2019 and 2023
• The National Insurance Crime Bureau (NICB) tracks converter theft as a top property crime category
• Organized theft rings operate across state lines, making federal and state coordination essential

Who Can Legally Sell Catalytic Converters?

Most states now restrict who can sell converters to scrap yards. The general categories of authorized sellers include:

• Licensed auto recyclers/dismantlers with a valid business license
• Registered automotive repair shops that remove converters as part of legitimate repairs
• Vehicle owners who can prove ownership of the vehicle the converter came from (title required)
• Government entities disposing of surplus vehicles

In many states, an individual walking in with a loose catalytic converter and no documentation will be turned away.

State-by-State Catalytic Converter Regulations

State	Proof of Ownership Required	Seller Restrictions	Penalty for Illegal Sale	Additional Requirements
Alabama	Yes	Licensed dealers and vehicle owners	Misdemeanor, up to $6,000 fine	Transaction records submitted to police
Arizona	Yes	Licensed dealers and vehicle owners	Class 6 felony for theft	Photo of converter and VIN required
Arkansas	Yes	Licensed businesses	Felony, up to 6 years	Serial number or VIN documentation
California	Yes	Licensed recyclers only	Misdemeanor; felony for repeat offenses	Converters held 3 days; recorded via CalRecycle
Colorado	Yes	Licensed dealers and vehicle owners	Felony, up to $100,000 fine	Must record VIN of source vehicle
Connecticut	Yes	Licensed dealers only	Felony, up to 5 years	7-day holding period
Florida	Yes	Licensed dealers and vehicle owners	3rd degree felony	Must provide title or registration
Georgia	Yes	Licensed dealers only	Felony, up to 10 years	Photo documentation required
Hawaii	Yes	Licensed businesses	Misdemeanor	Transaction records required
Idaho	Limited	No specific restrictions	Misdemeanor	General scrap rules apply
Illinois	Yes	Licensed dealers and vehicle owners	Felony, up to 3 years	7-day hold; records to police within 24 hours
Indiana	Yes	Licensed dealers and vehicle owners	Level 6 felony for theft	Photo and weight documentation required
Iowa	Yes	Licensed businesses	Aggravated misdemeanor	Check payment only
Kansas	Yes	Licensed businesses	Felony for possession of detached converter without documentation	Records reported to police
Kentucky	Yes	Licensed dealers and vehicle owners	Class D felony	Bill of sale required
Louisiana	Yes	Licensed recyclers only	Felony, up to 5 years plus $5,000 fine	No cash; check mailed after hold
Maryland	Yes	Licensed dealers and vehicle owners	Misdemeanor, up to $1,000 fine	Transaction reported within 24 hours
Massachusetts	Yes	Licensed dealers only	Fine up to $10,000	Records maintained 3 years
Michigan	Yes	Licensed dealers and vehicle owners	Felony, up to 5 years	Title or registration of source vehicle required
Minnesota	Yes	Licensed dealers and vehicle owners	Felony for theft, gross misdemeanor for illegal sale	3-day holding period
Mississippi	Yes	Licensed businesses	Felony, up to 5 years	No cash payment
Missouri	Yes	Licensed dealers and vehicle owners	Class E felony	5-day hold; records to law enforcement
Montana	Limited	No specific restrictions beyond general scrap laws	Misdemeanor	General scrap transaction rules apply
Nebraska	Yes	Licensed businesses	Class IV felony	Signed declaration of legal ownership
Nevada	Yes	Licensed dealers and vehicle owners	Category C felony for theft	Photo and thumbprint required
New Jersey	Yes	Licensed recyclers only	3rd degree crime	5-day hold; reported to police
New Mexico	Yes	Licensed businesses	4th degree felony	No cash payment
New York	Yes	Licensed dealers only	Class E felony	5-day hold (10 days in NYC)
North Carolina	Yes	Licensed dealers and vehicle owners	Class H felony for theft	Records submitted daily to police
Ohio	Yes	Licensed dealers and vehicle owners	5th degree felony	3-day hold; no cash
Oklahoma	Yes	Licensed businesses only	Felony, up to 5 years	No cash; records to police within 48 hours
Oregon	Yes	Licensed recyclers only	Class C felony	7-day hold; no cash
Pennsylvania	Yes	Licensed dealers and vehicle owners	3rd degree felony for theft	3-day hold; title required
South Carolina	Yes	Licensed dealers and vehicle owners	Felony, up to 10 years for organized theft	Photo documentation
Tennessee	Yes	Licensed businesses only	Class E felony	No cash; 5-day hold
Texas	Yes	Licensed businesses only	State jail felony (2+ converters)	8-day hold; extensive documentation
Utah	Yes	Licensed dealers and vehicle owners	2nd degree felony for organized theft	VIN recording required
Virginia	Yes	Licensed dealers and vehicle owners	Class 6 felony	5-day hold
Washington	Yes	Licensed dealers only	Class C felony	Must record converter serial number or etch VIN
Wisconsin	Yes	Licensed businesses	Class H felony	5-day hold; records to police

Catalytic Converter Marking Programs

Several states and municipalities have launched converter marking or etching programs to deter theft. These programs etch the vehicle’s VIN onto the converter, making it traceable if stolen.

States and cities with active marking programs include:

• California: Multiple city and county programs statewide
• Colorado: Denver metro area offers free marking events
• Illinois: Chicago and suburban police departments run regular events
• Michigan: Several programs in the Detroit metro area
• Minnesota: Twin Cities area programs
• New York: NYPD and suburban police departments
• Ohio: Multiple programs in Cleveland, Columbus, and Cincinnati areas
• Texas: Houston, Dallas, San Antonio, and Austin programs
• Washington: Statewide program through the State Patrol

Restricted and Regulated Materials

Beyond catalytic converters, many states restrict or regulate the sale of specific types of scrap metal. These restrictions target materials that are commonly stolen from specific locations.

Commonly Restricted Materials

Material	Why It Is Restricted	States With Special Rules
Copper wire (insulated/burned)	Stolen from construction sites, utility lines, and buildings	Most states prohibit buying burned copper wire; CA, FL, GA, TX require additional documentation
Brass fixtures and fittings	Stolen from plumbing installations and construction sites	Several states require contractor verification
Aluminum bleacher seats	Stolen from parks and schools	States including TX, FL, GA restrict purchase
Manhole covers	Stolen from public infrastructure	Many states prohibit purchase without government authorization
Guard rails and road signs	Stolen from highways	All states prohibit purchase; federal infrastructure theft laws apply
Cemetery markers/plaques	Stolen from cemeteries	Felony in most states; many states ban purchase outright
Beer kegs	Stolen or unreturned from breweries	Many states require proof of ownership or brewery authorization
Air conditioning units	Stolen from homes and businesses	FL, TX, GA, and others require HVAC license or proof of ownership
Utility meters	Stolen from utility companies	Illegal to purchase in most states without utility authorization

Materials That May Require Additional Documentation

Some materials are legal to sell but require extra paperwork:

• Whole vehicles or auto bodies: Require a vehicle title in all states
• Appliances containing refrigerants: Must be properly evacuated by a certified technician before scrapping (EPA requirement, nationwide)
• Lead-acid batteries: Regulated under hazardous materials laws; most yards accept them, but transport regulations apply
• Electrical transformers: May contain PCBs; require proper testing and documentation
• Railroad materials: Require proof of authorization from the railroad company in most states

Record-Keeping Obligations for Sellers

While scrap yards bear the primary burden of maintaining transaction records, sellers also have important record-keeping obligations. These are driven partly by state law and partly by federal tax requirements.

What You Should Keep

How Long to Keep Records

• Tax-related records: Keep for at least 3 years after filing the return (IRS standard), though 7 years is safer
• Transaction receipts: Keep for at least 1 year, or longer if your state requires it
• Source documentation: Keep for at least 1 year after the transaction
• Vehicle titles for scrapped vehicles: Keep a copy permanently

Tax Obligations for Scrap Metal Income

Scrap metal income is taxable, and the IRS takes it seriously. Whether you sell scrap once a year or every week, understanding your tax obligations prevents costly surprises.

The $600 Threshold and 1099-MISC

Scrap yards are required to issue a 1099-MISC form to any seller who receives $600 or more in aggregate payments during a calendar year. Key points:

• The $600 threshold is per yard — if you sell at multiple yards and receive less than $600 at each, you may not receive any 1099 forms
• All scrap income is taxable regardless of whether you receive a 1099 — the $600 threshold only determines whether the yard reports it, not whether you owe tax
• 1099 forms are sent by January 31 for the prior year
• The IRS receives a copy of every 1099 issued to you

Self-Employment Tax

If scrapping is a regular activity for you (as opposed to an occasional clean-out), the IRS may consider you self-employed. This triggers additional obligations:

• Self-employment tax: 15.3% on net self-employment income (covers Social Security and Medicare)
• Schedule C filing: You will report scrap income and expenses on Schedule C of your tax return
• Quarterly estimated taxes: If you expect to owe $1,000 or more in tax, you are required to make quarterly estimated payments
• Business expenses: You can deduct expenses related to your scrapping activity, including fuel, tools, vehicle expenses, and supplies

Deductible Expenses for Scrappers

If you file as self-employed, the following expenses are generally deductible:

Expense Category	Examples
Transportation	Mileage (IRS standard rate), fuel, tolls, parking
Vehicle expenses	Truck maintenance, insurance (business-use portion), registration
Tools and equipment	Cutting tools, magnets, wire strippers, scales, safety equipment
Supplies	Gloves, bins, sorting containers, tarps, tie-downs
Protective gear	Safety glasses, steel-toe boots, gloves, hearing protection
Phone and internet	Business-use portion for calling yards, checking prices

Penalties for Violations

Scrap metal law violations carry real consequences. Both sellers and yards face penalties that range from fines to felony charges, depending on the state and the nature of the violation.

Penalties for Sellers

Violation	Typical Penalty Range
Selling stolen scrap metal	Felony theft charges; up to 10+ years imprisonment depending on value and state
Selling without valid ID	Transaction refused; potential misdemeanor if fraud is involved
Providing false identification	Felony in most states; up to 5 years imprisonment
Selling a stolen catalytic converter	Felony in most states; fines of $1,000 to $100,000+
Selling restricted materials without documentation	Misdemeanor to felony depending on material and state
Selling burned copper wire	Misdemeanor; potential felony if linked to theft
Tax evasion on scrap income	IRS penalties, interest, and potential criminal charges

Penalties for Scrap Yards

Yards that do not follow the law also face severe consequences:

• License suspension or revocation for repeated violations
• Fines ranging from $1,000 to $50,000+ per violation
• Criminal charges for knowingly purchasing stolen materials
• Civil liability to theft victims

Tips for Staying Compliant

Following scrap metal laws does not have to be complicated. These practical tips will keep you on the right side of the law and make your transactions smoother.

Find a Compliant Scrap Yard Near You

Understanding the law is the first step. The second step is finding a reputable, licensed scrap yard that follows state regulations and treats sellers fairly.

A licensed yard will:

• Ask for proper ID and documentation — this is actually a good sign, not a hassle
• Provide clear receipts for every transaction
• Explain their payment process upfront, including any holding periods
• Maintain visible scales and pricing so you can verify weights and rates
• Display their business license and any required permits
• Report transactions to law enforcement as required by state law

If you are new to scrapping, start with our complete guide to selling scrap metal, which walks you through the entire process from sorting to getting paid. And if you are specifically interested in catalytic converter values, check out our catalytic converter scrap value guide for current pricing information.

Staying informed about scrap metal laws protects you legally, ensures you get paid properly, and contributes to reducing metal theft in your community. The few minutes spent understanding these regulations are well worth the peace of mind. Check current scrap prices and use our scrap calculator to estimate your load value before visiting a yard.