Temporary Tags: New Missouri Vehicle Sales Tax Act Comes into Force in August | KOLR
ST. LOUIS – Summer trips to Missouri and those on the road trip playing the license plate game, counting the most out-of-state license plates is usually the winner. But counting the number of temporary labels in Missouri, well, it’s thousands in St. Louis and all over the state.
âTemporary beacons and expired temporary beacons in Missouri if you’re driving on the highways,â said Doug Smith, head of the Missouri Automobile Dealers Association. âI see them everywhere. It’s not just a St. Louis problem, it’s the whole state.
Currently, if you buy a vehicle from a Missouri car dealership, you get temporary paper labels and have 30 days to pay sales tax at a DMV office.
For example, a car that costs $ 10,000 in town would cost $ 1,000 in sales tax, which can be a lot for many.
Now Governor Mike Parson has enacted a plan to update the state.
âIf you finance your vehicle for 48, 60, or 72 months, you’re only talking about a few dollars a month that would be included in that retail contract,â Smith said.
âIt really is a way to make it easier to solve a lot of revenue collection problems and also make it easier for the taxpayer. Prevent the taxpayer from breaking the law by giving title to their vehicle. ”
Smith welcomes the new law, which comes into effect on August 28. Not only will the Missouri Department of Revenue get upgrades to its old computer system, but customers will be able to pay sales tax at the dealership.
âBy doing it at the point of sale with these, he upgrades these systems (and) can talk to highway patrol,â Smith said. “These systems can communicate with motor vehicle registration, and you have a transparent way to communicate all of that information.”
Smith estimates the state will generate $ 26-40 million that will fund improvements to roads, bridges and safety.
Those temporary beacons you see everywhere won’t go away overnight. Expect this to be a slow process over the next four years.