Vehicle registration law is having impact on tax revenue

Last edited 3:04 p.m., Aug. 27, 2025 [Editor's note: Allen Icet’s title and comparisons of the number of accounts collected in the month of March 2022-2025 have been corrected.]

On Feb. 24, Springfield City Council voted to allow the towing of unregistered vehicles in the city.

The measure, proposed by former Mayor Ken McClure and Councilmember Craig Hosmer to allow the towing of vehicles with missing or expired plates, was aimed at correcting a deficit in personal property tax collection, and Greene County Collector Allen Icet said it appears to be having the desired effect.

Icet said via email that a review of new personal property accounts created in March 2025, after passage of the bill, showed a 67% increase year over year, with 7,192 accounts collected versus 4,297.

By comparison, he said there was only a 12% increase in the month of March from 2022 to 2023, from 5,350 to 6,002 accounts.

Under state law, owners must show proof that they have paid personal property taxes, or a statement of nonassessment, in order to register their vehicles, according to the Missouri Department of Revenue.

Icet said he also reviewed late assessment penalties on personal property to see if the same trend occurred. The March 2025 figure showed a 257% increase from March 2024, with collection of $225,510 versus $87,871. A comparison of proceeds collected in both March 2022 and March 2023 showed a year-over-year increase of 50%, from $61,808 to $92,589.

“Based on both the number of new accounts as well as the assessment penalties paid, I am confident to say the city ordinance had the intended effect to increase the amount of personal property tax collected,” Icet said.

The measure passed by a 5-3 vote of council, with three members – Heather Hardinger, Monica Horton and Brandon Jenson – voting against it because of its impact on poorer Springfieldians. Jenson also lamented the fact that the bill was not vetted by a council committee prior to coming up for a vote. Voting for the measure were Hosmer, McClure, Derek Lee, Abe McGull and Matthew Simpson. Callie Carroll was absent from the meeting.

The towing bill was sent back to council’s Plans & Policies Committee in June, after its passage, and emerged unchanged after a two-month review period.

In an interview, Hosmer said he was pleased with the legislation’s results, which are apparent in the reduction of the number of unregistered vehicles on city roadways.

“I did a ride-along with the Springfield Police Department a few days ago,” he said. “They said they still look for them, but they see very few.”

At one point, Hosmer said, roughly 47% of vehicles in the city were unregistered.

Hosmer also sponsored a bill, passed in June, that requires payment of personal property taxes owed by businesses before they may obtain an occupational license. Council heard the first reading of a bill Monday to suspend enforcement of the requirement and send it to a council committee for review.

The move, according to Mayor Jeff Schrag, could prevent unintended consequences from the measure, which was never vetted by a council committee.