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A newly signed Missouri law—Senate Bill 28, approved by Governor Mike Kehoe—will significantly alter how vehicles are registered in the state. Car buyers will now face new rules regarding temporary license tags and sales tax payments, aiming to streamline registration and enhance state revenue collection.
Temporary Tag Rules Tightened
One of the most immediate effects of the new law is the reduction in the validity period for temporary license tags. The 90-day temporary tag option has been eliminated. Under the updated system:
- Most buyers will now receive 30-day temporary tags
- Dealerships bonded at $100,000 or more can issue 60-day tags
“You can’t just keep reissuing temp tags,” said Trish Vincent, Director of the Missouri Department of Revenue, emphasizing the need to prevent abuse and encourage timely registration.
In addition, the state has begun rolling out new 7-digit temporary tags to address the shortage of available number combinations.
Sales Tax Must Be Paid at Time of Purchase
A major policy shift will soon require sales tax to be paid at the time of the vehicle purchase, rather than afterward. Dealers will not be allowed to issue temporary tags until the tax is paid.
This requirement will go into effect once the state completes its electronic vehicle titling and registration system.
“Once implemented, buyers will pay sales tax at the dealership,” Vincent explained. “The temporary tag issued will correspond to the plate that will be mailed.”
The state is currently in Phase Two of the system rollout, which involves educating more than 6,000 auto dealers and 2,500 taxing authorities across Missouri.
Addressing the Expired Temp Tag Problem
Officials say the new law is a response to the growing number of expired temporary tags on Missouri roads—a problem that leads to unpaid vehicle taxes and reduces funding for critical public services such as:
- Road maintenance
- Public schools
- County government operations
“When temp tags expire, it usually means taxes haven’t been paid,” Vincent noted. “That lost revenue impacts roads, schools, and other essential services.”
Implementation Timeline
- The new 30-day tag rule will take effect on August 28, 2025
- The electronic vehicle registration system is expected to be fully functional by the end of 2026
Once fully implemented, the law will digitize and streamline the registration process, ensuring faster compliance and more reliable revenue collection.
Missouri’s Senate Bill 28 is a transformative law aimed at modernizing the vehicle registration process, cracking down on expired temp tags, and ensuring that sales tax is collected at the point of sale.
With the rollout of an electronic titling system and stronger regulation of temporary tags, the state hopes to improve accountability, reduce tax evasion, and direct more funds toward infrastructure and education.