Why Missouri Auto Dealers May Soon Be Charging Administrative Fees

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SPRINGFIELD, Mo. (KY3) – The Missouri Department of Revenue says authorized dealers can now increase their administrative fees from $ 199 to $ 500 due to Senate Bill 176 which came into effect on August 28.

The new law requires dealers to contribute 10% of their administrative fees to the Motor Vehicle Administration Technology Fund, which will help create new technology for an integrated driver’s license and driver’s license system. The Missouri Department of Revenue is changing things to make it easier to collect the 10% administrative fee.

“The state of Missouri could previously charge $ 199 and this has now been increased,” said Terry Roberts, executive director of the Missouri Independent Auto Dealers Association. “He’s supposed to create funds for the state technology fund which is going to help create a new computer system to help all the dealerships communicate.”

Ultimately, this new system will be able to collect sales tax dollars at the point of purchase and may eliminate temporary labels altogether in the future, according to Roberts.

According to the ministry, by December 1, all dealers must report whether they charge an administrative fee and what the dollar amount is.

By January 1, all dealers renewing their expiring licenses or requesting a new license will need to use the department’s online business portal and report whether they charge an administration fee and dollar amount. According to the new invoice, the amount due will be 10% of each administrative fee charged based on the total number of sales reported in the previous month.

Queen City Motors car dealership explains how this new bill will make a difference.

“The state loses a lot of revenue because people never pay sales tax on their vehicles,” said Chris King, owner of Queen City Motors. “If you walk the streets of Springfield, you can see temporary labels that have been expired for years. “

This will be another step that we will have to take that will also add to the purchase price of the vehicle in the eyes of the customer, says King.

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