Unpaid motor vehicle tax costs Missouri millions a year

COLUMBIA, Mo. (KMIZ)

Unpaid motor vehicle sales tax costs Missouri millions of dollars a year, according to the Missouri Department of Revenue.

Between January 1, 2021, and July 23, 2024, the Department of Revenue reported more than 113,000 delinquent accounts tied to temporary permits, adding up to nearly $145 million in unpaid fees.

Each year, the department estimates its losses at between $20 and $30 million in motor vehicle sales tax alone. When the state loses that money, it directly affects funding for road improvements across Missouri and reduces the money that goes to counties.

In 2024, the DOR said it collected $635,776,054.78 in motor vehicle sales tax.

Last year, the Missouri State Highway Patrol issued more than 15,000 citations for expired temporary tags and license plates across the state. While citations are issued for drivers with expired temporary tags, MSHP says it cannot force drivers to pay their sales tax because it is a non-moving violation.

With a fine of just $50.50 for an expired temporary tag plus county court costs, many drivers choose to take the risk of a ticket rather than paying the full vehicle sales tax because the fine tends to be cheaper.

If a temporary tag is more than 60 days expired, the fine could jump to $250.

A new state law is about to take effect that proponents hope will help fix the problem. Hear more about it Wednesday on ABC 17 News at 10.