The last time Missouri approved service fee increases to help the state’s license offices was in 2019, when several were at risk of closing.
To help recruit and retain these offices, Rep. Dave Hinman, R-O’Fallon, is proposing a $3 increase for learner’s permits, driver’s licenses, lien notices, vehicle registrations, renewals, and title transfers.
“It’s becoming more and more difficult getting folks to bid on our license bureau offices,” Hinman told the Missouri House General Laws Committee on Tuesday. “This is a very specific business where all the business expenses continue to increase, yet the business owner cannot increase any fees to cover those costs.”
Another provision in House Bill 207 would put some of the money into a new distribution fund. One-dollar from every fee increase would be added to the state fund and then that money would be equally divided to the license offices each quarter.
“It is really set up to assist rural districts or districts that are suffering,” he said.
Josko Wrabec, who runs a license office in Jackson County, said some rural offices are especially struggling to stay open.
“We’ve got the cost of our leases that have increased. Just the power bill has increased,” Wrabec said during Tuesday’s committee hearing on the bill. “I mean, as business operators, whatever bread was on the table, it’s gone. And we appreciate the fee increase in 2019 but unfortunately, all the things that happened right after that, it really kind of soaked all that up.”
Joseph Plaggenberg, who runs a license office in Troy, supports the fee increases but opposes the creation of the distribution fund.
“A license office distribution fund is a euphemism for license office socialism, because essentially what you’re doing is you’re taking offices that run better, that run more efficiently, and you’re basically pulling their money and giving it to other offices. Granted, some of them are smaller and they’re struggling, but others are just running poorly,” Plaggenberg said.
Arnie Dienoff, a Missouri citizen, said now is not the time for the state to raise these fees. He pointed to the cost-of-living continuing to rise. Dienoff said the state would save money if the Missouri Department of Revenue operated these offices instead of small businesses.
A House committee could decide soon whether to advance Hinman’s bill.
Copyright © 2025 Missourinet