Texas will phase out temporary paper license plates beginning July 1, 2025, under House Bill 718, which Governor Greg Abbott signed into law in June 2023.
The new law requires car dealerships to issue permanent metal license plates at the time of vehicle purchase, replacing temporary paper tags.
The Texas Department of Motor Vehicles (TxDMV) will stop issuing paper tags through its eTAG system, affecting buyer tags, Internet Down Tags, and other temporary permits.
House Bill 718 was introduced to address concerns over fraud linked to paper tags, which law enforcement agencies say are easily forged and difficult to trace. Officials hope that metal plates will reduce criminal activity associated with temporary paper tags.
The TxDMV has provided guidance to motor vehicle dealers on the law’s implementation. Dealerships are required to stock four new types of metal license plates to replace paper tags and must issue these plates to vehicle buyers at the point of sale.
The law also mandates that metal license plates stay with the vehicle when it is sold or transferred. This measure aims to maintain consistent vehicle registration and ownership records across transactions.
The new rules apply to both new and used vehicle purchases, ensuring buyers receive permanent plates immediately. This change is expected to streamline the registration process for vehicle owners and dealerships.
Law enforcement agencies across Texas have expressed support for the legislation, citing its potential to reduce fraudulent activity tied to untraceable paper tags.