KANSAS CITY, Mo. — Missouri drivers will see a multitude changes within the next two years, including the discontinuance of temporary tags.
This comes after the passage of Senate Bill 28, which will take effect on Aug. 28, but the change in paying vehicle sales tax will be implemented once the second phase of the Department of Revenue‘s new FUSION (Fifty Unique Systems In One Nexus) system is operational.
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Once the system is in place, motor vehicle buyers in Missouri will be required to pay sales tax at the point of the sale when they purchase through a dealership.
If the car is purchased from a private property, buyers will continue to take their bill of sale to any Missouri license office to pay sales tax. Once the purchase is complete in both scenarios, buyers will get a paper copy of their new license plate and a permanent metal plate with the same number configuration will be mailed to the buyer.
Buyers will no longer receiver have the option of getting a temporary tag.
“This change to the way we collect sales tax will eliminate temporary license tags which rob the state of millions of dollars each year because of drivers who never pay their sales tax,” said Missouri Director of Revenue Trish Vincent. “Though the law goes into effect on August 28, the sales tax changes cannot take effect until our new FUSION system is up and running.”
The purpose of FUSION is to combine older mainframe systems and software applications that can no longer communicate with each other into one core system that will significantly increase speed and efficiency in performing motor vehicle and driver licensing functions.
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The first phase was focused on driver licensing and implemented on Nov. 12, 2024. Until FUSION is fully operational, the current sales tax collection process will remain in effect for both dealerships and private vehicle purchases.
“This new law affects both the seller and the buyer,” Vincent said. “We are going to work with dealers to get everyone trained on the new system and prepared to collect sales tax. Buyers will need to be ready to pay the full sales tax amount at the time of purchase.”
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