AUSTIN, TX – Texans purchasing a car from a licensed dealership will soon leave the lot with permanent metal license plates already installed, thanks to a new state law taking effect July 1, 2025. The shift comes under House Bill 718, passed by the 88th Texas Legislature in 2023, and marks a major change in how vehicle registration is handled across the state.
The move is designed to streamline the registration process and significantly curb fraud tied to temporary paper tags, a persistent issue that has plagued Texas roads and law enforcement for years.
Tackling a Growing Problem
For more than a decade, fraudulent paper tags have become a tool for criminal activity—from toll evasion and vehicle theft to untraceable getaways. Counterfeit tags have been bought and sold online by the thousands, creating a headache for law enforcement and Texas tax offices alike.
“This new law is a win-win,” said a spokesperson from the Texas Department of Motor Vehicles (TxDMV). “It’s about protecting public safety while making things easier for law-abiding Texans.”
What the New Law Means for Drivers
Buying from a Dealer
In the past, buyers were given temporary paper tags and waited for their metal plates to arrive in the mail. Under the new law, beginning July 1, dealerships will issue metal plates at the point of sale, which will be affixed to the vehicle before it leaves the lot.
Drivers will still receive their registration sticker separately by mail from their county tax office. Until then, buyers must keep the dealer-issued plate receipt in the vehicle to confirm the transaction and pending registration if stopped by law enforcement.
Trading In Your Vehicle
Under Senate Bill 1902, passed during the 89th Legislature earlier this year, Texas dealers may now transfer general-issue license plates from a traded-in vehicle to another sold within 10 days, provided the plate type matches the new vehicle.
Specialty plates—such as military, collegiate, or personalized designs—remain with the original owner.
Private Sales Stay the Same
The new process does not affect private party transactions. Texans buying or selling vehicles privately should continue following existing procedures:
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Sellers must remove both license plates and registration stickers before handing over the vehicle.
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Plates can be transferred to another vehicle, if appropriate, by visiting a local county tax assessor-collector’s office.
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A Vehicle Transfer Notification must be submitted to TxDMV within 30 days of the sale.
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Buyers have 30 days to register the vehicle in their name and obtain new plates from their county tax office.
A Simpler, Safer System
The updated plate-issuing process is expected to:
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Cut down on paper tag fraud, making fake tags less accessible.
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Support faster, more accurate enforcement with permanent plates tied to vehicle records from day one.
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Enhance the customer experience by eliminating the wait and hassle of temporary tags.
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Boost accountability by requiring plate-to-vehicle assignment at the time of sale.
Want to Learn More?
For complete details on how the new laws affect consumers, dealers, tax offices, and law enforcement, visit:
TxDMV.gov/HB718
This change is part of Texas’s broader effort to modernize its vehicle registration system—bringing more security, less paperwork, and a smoother ride for everyone on the road.
