New Missouri Law Requires Extra Fees for Car Buyers Starting 2024
Drivers in Missouri will face additional costs when purchasing new vehicles due to a recent change in the law governing temporary tags. The legislation, passed last week, mandates that sales tax must be paid directly at the dealership at the time of purchase. This new requirement aims to streamline tax collection for state revenue officials.
Changes to Temporary Tag Regulations
Under the revised law, which is set to take effect in 2024, dealerships will no longer be able to issue a 90-day temporary tag. Instead, they will provide a 30-day tag for vehicles that are financed through a loan. Currently, drivers have a 30-day grace period to organize their finances before making any payments on their newly acquired vehicles.
The shift is intended to ensure that state taxes are collected more promptly. While the law will impact car purchases from dealerships, it will not affect private vehicle sales. According to local news reports, state officials have indicated that although the law is scheduled for implementation next year, it may not be fully enforced until as late as 2027.
Concerns Over Temporary Tag Misuse
Officials have expressed concerns regarding the misuse of temporary tags, with reports suggesting that some drivers fail to renew their tags, thus evading necessary fees. Trish Vincent, director of the Missouri Department of Revenue, commented, “Temp tags should only be good for 30 days,” emphasizing the need for compliance.
Missouri dealership owners have welcomed this legislative change, as it clarifies the taxation process associated with vehicle purchases. Dealerships commonly issue temporary tags, often referred to as “drive-out tags,” which allow customers to drive their new vehicles off the lot before obtaining permanent license plates.
Motorists should be aware that driving with a counterfeit vehicle tag is illegal. In Tennessee, for instance, possessing a fake tag is classified as a class E felony, which could result in a prison sentence of up to six years. This highlights the importance of adhering to vehicle registration laws, especially for those who have recently relocated to a new state.
In related news, Texas has enacted its own vehicle registration law that restricts dealerships from issuing paper license plates as of July 1, 2025. Under this new regulation, only four types of plates will be made available. A temporary dealer plate will be reserved for test drives, while a special green metallic plate will be issued for out-of-state buyers, valid for 60 days. Drivers who purchased cars before the law’s implementation will not face retroactive penalties but must replace their temporary plates within 60 days.
The changes in both Missouri and Texas reflect an increasing emphasis on compliance and efficiency in vehicle registration processes as state officials seek to enhance tax collection and reduce instances of fraud. As these laws come into effect, drivers are encouraged to stay informed about their obligations to avoid potential penalties and ensure smooth transactions when buying new vehicles.
