Tax reform bill would raise fees at DMV

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COLUMBIA - A Missouri lawmaker want to make roads better by raising fees at the DMW and cutting income tax rates.

Rep. Elijah Haahr, R- Springfield, is sponsoring HB 2540, which would raise license and registration fees at the DMV. They have not been increased with inflation since 1984.

Haahr said the increase in fees would be about $7 every six years when renewing drivers licenses and an additional $29 when getting vehicle tags.

The goal is to raise $2 billion over the next 10 years to go directly into repairs and improvements of Missouri roads and bridges. Haahr said some are decades behind on repairs.

“MoDOT estimates that we’re $800 million a year under funding the roads and bridges,” he said.

Proposed tax cuts are designed to offset the sting of the increased rates. They would bring both personal and corporate income tax rates down to 5 percent from 5.9 percent and 6.5 percent, respectively.

Rep. DaRon McGee, D-Kansas City, said he is worried about the revenue the state would lose if income tax rates were cut.

“If you lower that just a half a percent, you're talking about hundreds of thousands of dollars in less revenue that you're taking in,” he said.

Haahr said this is a tax reform bill and he wants to be fiscally responsible with this bill.

“Our goal at the end of the day is to have a fairer and flatter tax system and fix the road fund and do it in a responsible way,” he said.

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