New law brings dramatic overhaul to temp tags, vehicle sales tax

JEFFERSON CITY, Mo. – Missouri Director of Revenue Trish Vincent said the state is overhauling the way consumers pay sales taxes on the purchase of new vehicles.

Also part of the new law: doing away with the current temporary licenses that are issued until the resident pays their sales tax at the department of motor vehicles.

“Temp tags will be a thing of the past,” said Vincent.

Under the new plan, customers will pay for the sales tax at the point of purchase.
“It's a one-stop shop,” Vincent said.

Once fully implemented, purchasers will be able to take care of the sales tax portion of the sale at the place they purchased the new vehicle.

“For the consumer, for the citizens out there, I think it's great because they don't have to then run to the DMV,” she said. “They don't have to go anyplace else.”

The department is still crafting a system with dealers to roll out the new sales tax portion of the law. Because of this, Vincent said the temp tag and sales tax part won’t be implemented until late next year, or early 2027.

Another provision in the law that takes effect this week will have more immediate impacts. The fee for a new driver’s license is increasing by 50%. A three-year license increases from $6 to $9, and a six-year license jumps from $12 to $18.