Changes for Missouri Car Buyers: New Temporary Tags and Sales Tax Rules
ST. LOUIS – Missouri residents purchasing vehicles will notice some adjustments in the way temporary tags are issued and sales tax is handled, following a new law signed by Gov. Mike Kehoe.
This law, known as Senate Bill 28, is set to modernize the vehicle registration process in the state. A notable change is that the expiration period for most temporary license plates has been reduced.
Under this legislation, the previous option of 90-day temporary tags will no longer be available. Instead, most temporary tags will now last for just 30 days. Dealers who have $100,000 bonds are permitted to offer 60-day tags, though.
Trish Vincent, director of the Missouri Department of Revenue, emphasized that “temporary tags cannot be reissued.” This introduces a sense of urgency for buyers.
As of now, the Revenue Bureau has begun issuing seven-digit temporary tags. Vincent mentioned that this change was necessary due to the state’s system being “incompatible.”
Another significant adjustment involves the collection of sales tax at the time of vehicle purchase. The law mandates that dealers must collect sales tax upfront before providing temporary tags. This is contingent on the successful rollout of a new electronic vehicle title and registration system.
“With our new system, when you visit the dealer, you can pay sales tax upon purchase,” Vincent explained. “At that point, the temporary tag functions as part of the official plate we will send to you.”
The Revenue Bureau is currently in the second phase of implementing this electronic system, which requires educating over 6,000 dealers and about 2,500 taxable jurisdictions about these changes.
Officials are optimistic that these updates will help alleviate the problems associated with expired temporary tags.
Vincent noted, “Whenever a temporary tag expires, it indicates that taxes aren’t being paid, and that affects road usage. It also leads to issues with registration in personal property, resulting in insufficient funds for schools and other services.”
The new law is anticipated to take effect on August 28th, and the Revenue Bureau plans to have the e-title and registration system fully operational by the end of next year.
