Starting July 1, 2025, car buyers in Texas will no longer leave the dealership with a temporary paper tag.
Thanks to House Bill 718, passed by the 88th Legislature, licensed dealers will issue permanent metal plates at the time of sale, whether the vehicle is new or used.
This change follows years of abuse in the temporary tag system, where fraudsters exploited loopholes to produce and sell fake paper tags. The result was a surge in untraceable vehicles, some of which were linked to criminal activity nationwide. In one FBI case, three individuals were tied to over half a million fake tags.
The new law aims to prevent these issues by streamlining the process and issuing permanent plates to drivers immediately. Until official registration stickers arrive by mail, buyers must keep a proof-of-purchase receipt in the car to show law enforcement.
Other changes include:
- Trade-ins: Dealers can reassign general-issue plates to another sale within 10 days if the vehicle type matches.
- Specialty plates: These stay with the original owner.
- Private sales: Still require sellers to remove plates and buyers to register and get new plates within 30 days. Sellers should also submit a transfer notice to the DMV.
Though originally set to take effect in 2023, the law was delayed twice to give dealers time to secure enough metal plates. The final date is now locked for July 1, 2025.
Leave a Reply
You must be logged in to post a comment.