New Texas Law Replaces Paper Tags with Metal Plates Starting July 1, 2025
Texas drivers will now receive permanent metal license plates directly from dealerships when purchasing a new or used vehicle, as House Bill 718 officially takes effect today. Enacted by the 88th Texas Legislature in 2023, the law eliminates the use of temporary paper tags issued by dealers in an effort to prevent fraud and simplify the vehicle registration process.
The Texas Department of Motor Vehicles (TxDMV) has worked for over a year to prepare stakeholders—including motor vehicle dealers, county tax assessor-collectors, front-line law enforcement, and consumers—for this sweeping change. The transition affects how plates are issued and transferred when buying, selling, or trading in vehicles.
What Buyers and Sellers Need to Know
Buying a Vehicle from a Dealer
As of July 1, consumers who purchase a vehicle from a licensed Texas dealership will be issued permanent metal license plates at the time of vehicle delivery. This replaces the longstanding practice of issuing paper temporary tags.
While buyers will still receive their registration sticker in the mail from their county tax assessor-collector’s office, they must carry the buyer’s plate receipt in the vehicle until the sticker arrives. This receipt serves as proof of purchase and pending registration, which can be verified by law enforcement if needed.
Trading In a Vehicle to a Dealer
Customers trading in vehicles that have general issue plates will see a change as well. Under Senate Bill 1902, passed by the 89th Texas Legislature, dealers may remove and reassign those plates to another vehicle of the same class sold within 10 days. This transfer option applies only to standard-issue plates; consumers with specialty or personalized plates will retain ownership of those plates and can transfer them to a new vehicle they own.
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Private Party Sales Remain Unchanged
For person-to-person sales, the process for plate and registration transfer remains the same:
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Sellers must remove their license plates and registration sticker from the vehicle before handing it over to the buyer.
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They may transfer those plates to another vehicle they own—if appropriate for the vehicle class—by visiting their county tax assessor-collector’s office.
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Sellers are urged to submit a Vehicle Transfer Notification (VTN) to the TxDMV within 30 days of the sale. While late VTNs are still accepted, submitting after 30 days does not guarantee release from liability.
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To complete the VTN, sellers must provide the buyer’s full name, address, and telephone number—ideally collected at the time of sale.
Buyers in private sales must submit a title and registration application to their county tax office within 30 days and obtain new metal plates to register the vehicle in their name.
Why the Change?
House Bill 718 was introduced to address growing concerns over the fraudulent use of temporary paper license tags, which had been exploited in criminal activity and posed challenges for law enforcement. By requiring dealers to issue permanent metal plates at the point of sale, the law is intended to improve road safety, reduce fraud, and enhance the traceability of vehicles throughout the state.
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Who Is Affected?
The law affects a wide range of stakeholders:
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Consumers buying, selling, or trading in vehicles
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Motor vehicle dealers, who must now stock and issue plates directly
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County tax assessor-collectors, who continue processing registration
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Front-line law enforcement, who will benefit from clearer plate tracking
The TxDMV has provided comprehensive training, operational guidance, and resources to support all affected parties.
Learn More
For detailed information about these changes—including how they impact consumers, dealerships, and government agencies—visit TxDMV.gov/HB718.
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Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
