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2024 unpaid vehicle fees cost Missouri Department of Revenue $27 million; 2026 law aims to reverse trend

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KSHB 41 reporter Megan Abundis covers Kansas City, Missouri, including neighborhoods in the southern part of the city. Share your story idea with Megan.

The State of Missouri is facing a significant revenue shortfall, with an estimated $27 million lost in 2024 due to residents not paying their vehicle registration, title, and expired tag fees.

This comes as Missouri drivers report facing challenges when attempting to comply with these requirements at the Department of Motor Vehicles (DMV).

Drivers interviewed described the DMV process as time-consuming and often difficult.

"It's been a lot trying to get in, waiting in line," said Ebony McClain, emphasizing the long wait times.

Osmar Rodriguez points out the need for planning, particularly for those with families.

"Especially when you have kids, you have to plan ahead," he explained.

Kelli Blewett stresses the importance of having all necessary documents in order.

"I had to make sure I had all my documents," she said.

McClain added, "Inspection information, my title," to the list of required paperwork.

Dayday Morgan outlines the various tasks involved in the process.

"Vehicle registration, insurance, all that stuff up here and get them all done and I'll be cool," he said.

These accounts from Missouri drivers highlight the difficulties associated with navigating the DMV process, potentially contributing to the state's revenue shortfall.

However, these Missouri drivers all have something in common. It’s that they are here at the DMV and will get it done, but it's not always easy.

"Adulthood,” Morgan said. “Oh yeah, they are expired, I'm going to have to pay a fine, but I'm going to be prepared for it, but that's the consequence of working, making sure you have what you need to get it done right."

There are local organizations that will try to help pay the back fees.

Still, the state of Missouri says in 2024, 21,543 delinquent fee accounts could range as high as $27,089,588.29.

In a statement, the Department of Revenue said, "However, it should be noted that this amount can decrease as the department is made aware of rescinded sales, errors, and trade-in or tax credit documentation."

It’s a number that doesn’t surprise Michael Jordan, who sells cars at Auto Now.

"If you just drive down the road, you'll see five out of six cars that have expired tags that people just aren't getting done. So, it doesn't surprise you? Not at all. Not at all."

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"I put a 30-day tag on the vehicle at time of purchase and then they have 30 days to pay their sales tax and registration at that time,” Jordan said.

He tells car buyers plan to pay 10 percent of the car's total to cover taxes and fees.

"In Kansas, they don't have to worry about that, it's already included in their loan. It's a double-edged sword,” Jordan said. “I think the sales tax parentage is way too high for where it needs to be and it hurts the community of trying to get into a nicer reliable vehicle.”

That will change, a bill signed into law two years ago, could take effect next fall.

It's where car buyers would be required to pay the fees and sales tax—everything upfront.

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It’s a way for the state to prevent missed payments, but if you’re financing a car, that will change the cost of the loan.

The Department of Revenue says they're currently working with Missouri car dealerships to get them educated and prepared on how to collect these taxes and fees. The system is slated to go live in the fall of 2026.