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DMV pauses temporary tags after agency reports 200,000 issued; lawmakers flag possible revenue loss

House Committee on Transportation · January 8, 2026

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Summary

The DMV told the House Transportation Committee it paused paper temporary tag issuance while an IT fix is queued after issuing more than 200,000 temporary tags since 2020–21; the agency estimated roughly two‑thirds never converted to permanent registrations and lawmakers asked the DMV to quantify potential lost sales‑and‑use tax revenue.

The Vermont Department of Motor Vehicles told the House Committee on Transportation on Jan. 7 that it has paused the automatic printing of paper temporary registrations while it adjusts its systems and requires upfront payment for temporary tags.

Commissioner Andrew Collier said the temporary‑tag practice that began during the COVID period allowed some private‑sale buyers to obtain inexpensive temporary plates without paying purchase‑and‑use tax and full registration fees. "We made a pause to that program," Collier said, adding that the change requires paying all fees up front to print a temporary plate.

Collier said more than 200,000 temporary tags have been issued under the prior approach and estimated that "about 2 thirds of people that had a temporary plate never came in" to complete permanent registration. Committee members ran preliminary calculations in the hearing and suggested missed sales‑and‑use‑tax revenue could be in the millions; one member estimated roughly $8 million based on a back‑of‑the‑envelope model.

Lawmakers asked DMV to provide detailed follow‑up data, including a county‑level breakdown of temporary tags and conversion rates, and clarified whether DMV has contact information to reach vehicle owners who received temporary tags. Collier said matching and outreach would be resource‑intensive and that DMV has attempted VIN cross‑checks; he committed to bringing refined numbers when the department returns.

The committee did not take formal action during the briefing but requested the DMV provide revenue‑impact estimates and supporting reports ahead of budget deliberations.