Missouri – Starting August 28, 2025, Missouri’s Senate Bill 28 will change the way we all do vehicle sales and temporary license plates. The law introduces stricter rules around sales tax collection and phases out traditional temporary (temp) tags, with full implementation linked to the rollout of the state’s new FUSION registration system.

Once FUSION is operational, dealerships will be required to collect motor vehicle sales tax at the point of sale before issuing any temporary plate. The new law reduces standard temporary tag validity to 30 days, ending the older 90-day tags except for certain bonded dealers who may issue 60-day tags. Under SB 28, temp tags will ultimately be replaced entirely—buyers will receive a paper version of their permanent plate immediately and a metal plate will arrive by mail.

The FUSION system (Fifty Unique Systems in One Nexus) is a consolidated digital platform intended to support integrated vehicle registration and tax collection across Missouri. While SB 28 becomes law on August 28, 2025, the requirement for dealerships to collect sales tax at the point-of-sale hinges on FUSION being fully functional, expected in late 2026 or early 2027.

The current system remains. Buyers continue getting 30-day temp tags, still required to go to the DMV to register and pay sales tax within that window. Temp tags will no longer be issued. Instead, buyers will receive a paper printout of their permanent plate configuration at purchase; the metal plate will follow by mail. The temp-tag system becomes obsolete. Between 2021 and mid‑2024, Missouri amassed over 113,000 overdue temporary tag accounts, translating to an estimated $145 million in unpaid taxes. Annually, the state reportedly loses $20–30 million due to drivers bypassing registration and tax obligations. Expired or altered temp tags have long been a difficulty for law enforcement. Gone unnoticed, they raise issues of fraud and uninsured drivers on the road.

Department of Revenue (DOR) Director Trish Vincent calls SB 28 a “positive step” that will help seal loopholes and boost collections. Many dealers welcome the long-term benefits but warn of short-term logistical challenges. While law enforcement encourages compliance, critics warn that without meaningful penalties for failing to turn in temp tags, noncompliance may persist.

Paul Barnard Editor

Paul Barnard is the editor of the Twin City News. Barnard Graduated from Norwich University, America's oldest private military college, with a B.S. in Communications and Media Technology. There he studied journalism and marketing. For years after, Barnard was in law enforcement and gained experience in the Special Investigations Unit and publishing all the department's press releases. As Barnard's family grew, he moved on to start Twin City News.

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