Expired temporary car license tags can be seen as you drive down the road across the state. State Rep. Michael O’Donnell, R-Oakville, said the cost of temp tag abuse is roughly $40 million to $60 million in uncollected state tax revenues.
The Missouri House of Representatives has passed his bill that he said could eliminate most of that abuse.
He wants to let car dealers collect the tax before buyers drive off the car lot.
“When I went out and bought groceries this weekend, I paid the sales tax at that point. For various reasons, Missouri has you go and pay your sales tax at the Department of Revenue DMV office,” he said.
O’Donnell said 47 of 50 U.S. states already collect sales tax the way he wants to have the sales tax collected.
“The other burden here was you had to make a special trip to a DMV. I know in our rural areas, these aren’t like Walgreens or CVS, they’re not everywhere. They’re difficult to find,” he said. “You should maybe put them in Dollar Generals or something like that in rural Missouri because a lot of people have to go a long way, cross county lines in a lot of cases to get to their nearest VA office.”
His bill does not require the sales tax to be rolled into monthly payments but O’Donnell said some car dealers are supportive of making this an option.
The next stop for the legislation is the Missouri Senate.
To see House Bill 415, click here.
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