Hailey
Starting August 28, 2025, Missouri drivers will see a notable increase in vehicle licensing fees due to a newly signed law aimed at helping sustain local license offices across the state.
New Law Raises Vehicle Licensing Processing Fees
Governor Mike Kehoe signed Senate Bill 3 into law on Thursday, authorizing a 50% increase in the processing fees charged at local licensing offices.
These fees are separate from the state-mandated vehicle registration and license charges and are collected by private contractors who run 174 license offices across Missouri.
Updated Fee Structure for Vehicle Licensing
The processing fee for licenses valid for up to three years will increase from $6 to $9. For licenses that last more than three years, the fee will jump from $12 to $18. These changes will officially take effect on August 28.
Breakdown of Fee Changes
| License Duration | Current Fee | New Fee |
|---|---|---|
| 3 Years or Less | $6 | $9 |
| More than 3 Years | $12 | $18 |
These new rates aim to support the operating costs of privately managed offices that handle vehicle titling, licensing, and registration.
State Revenue Department Expects Normal Activity
Despite the upcoming increase, the Missouri Department of Revenue does not anticipate a last-minute surge in licensing applications.
According to Revenue spokesperson JoDonn Chaney, the increase is relatively minor compared to the total cost of registering or titling a vehicle, and most residents are unlikely to rush in to avoid the fee hike.
“We are not expecting any kind of rush because of that,” Chaney stated.
Why Lawmakers Approved the Fee Hike
The fee increase follows growing concerns about rising operating expenses at license offices. Rep. Dave Hinman (R-O’Fallon), the House sponsor of the legislation, pointed out that while the cost of running these businesses has grown due to inflation, the offices have been unable to raise their fees to match their expenses.
Without the ability to adjust their earnings, many contractors and small business owners have been closing down license offices, creating significant inconvenience for Missouri residents.
Recent License Office Closures Across Missouri
Several offices have already shut their doors in recent months:
- In June, the Caruthersville license office closed, forcing residents to travel 30 miles to Kennett or 36 miles to New Madrid to access licensing services.
- In May, the Willow Springs office closed, requiring a 17-mile drive to the nearest office in Mountain View.
Such closures have underscored the need for a financial update to help license offices remain open and accessible.
Fee History and Revenue Projections
This adjustment marks only the second fee increase since 1999, with the most recent one taking place in 2019. In fiscal year 2024, Missouri’s 175 license offices handled nearly 9 million transactions, generating $58.4 million in fees.
The new increase is projected to generate an additional $1.4 million, helping license offices keep up with rising costs and continue operations in underserved areas.
The upcoming changes to vehicle licensing fees in Missouri aim to ensure that local license offices remain financially viable amidst growing operational costs.
While the fee increase takes effect August 28, 2025, state officials believe the change will have minimal impact on resident behavior. However, the adjustment could prove essential in maintaining access to licensing services statewide.