JEFFERSON CITY 鈥 Motorists heading to vehicle license stations across Missouri could be in for some sticker shock under a proposal pending in the state Senate.
Lawmakers Tuesday gave initial approval to a plan raising processing fees by $3 per transaction as part of an effort to attract and retain the independent contractors who run the offices across the state.
Fees for licensing a car or a trailer would jump from a current $6 to $9 to help vendors meet payroll and potentially make a profit at the more than 170 offices.
Sen. Sandy Crawford, a Buffalo Republican who is sponsoring the proposal, earlier removed a provision that would have established a separate fund to help subsidize lesser performing offices.
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Crawford said the added fees are needed because inflation has driven up prices for labor and materials at the independently operated facilities.
鈥淚nflation has increased the products that they use鈥 and the labor market is very competitive,鈥 Crawford said.
The increase would be the second since 1999, following an adjustment in 2019. Some contractors have closed offices because of low profit margins, requiring people to drive longer distances to license their vehicles.
鈥淭his makes some sense given that some offices are closing,鈥 said Sen. Brian Williams, D-University City.
But, Sen. Patty Lewis, D-Kansas City, said some other solution should be found.
鈥淚 think a 50% increase is something I cannot support,鈥 Lewis said. 鈥淚 think there is something we could do that鈥檚 not so drastic.鈥
A fiscal review shows the added fees will generate about $1.4 million annually.
In addition to raising fees, the plan would allow the department to extend contracts for up to five years, potentially giving vendors more certainty in their plans.
The measure needs another vote in the Senate before advancing to the House. A similar bill is moving in the House.
The legislation is Sena
Missouri's Legislature reflects the federal structure in many ways. Video by Beth O'Malley
