Editor’s note: There is a provision in the bill that gives auto dealers time to enact the changes. It may be several years before the new system is put into place in Missouri. This article originally stated that the changes take effect at the end of August.
MISSOURI — The process to buy a car in Missouri may be changing later this month. The system used to collect auto sales tax may be streamlined to help cut down on the number of expired temp tags. That system may take several years to implement.
When you get a new vehicle, you start paying the sales tax on the purchase at the dealership. Right now, you have to make a trip to the Department of Revenue to pay for the sales tax separately.
State Representative Lane Roberts said it’s important to streamline the process for drivers.
“Why it’s necessary for someone to buy a car, and then have to make a trip to do a separate transaction to pay a separate fee seems like an unnecessary burden on the buyer. So what this bill does is it makes it a single transaction,” said Roberts.
The change is part of Senate Bill 389 and makes Missouri the 48th state to require dealerships to collect the sales tax when a vehicle is sold. It takes effect on August 28th.