Texans waved goodbye to temporary paper license plates on July 1, 2025. This change is the result of House Bill 718 (HB 718), signed into law by Governor Greg Abbott in June 2023. The move to metal license plates was primarily spurred by concerns over widespread fraud and abuse associated with easily counterfeited paper tags.
Why was HB 718 signed into law?
The Texas Legislature enacted HB 718 in 2023 to address concerns related to the fraudulent use of paper license tags. Bootleg paper license plates have raised civil and criminal concerns in Texas.
Paper tags could easily be manipulated. License holders were able to access the state’s electronic tag system, input fraudulent details, and generate authentic Texas paper tags, which were then illegally sold on social media platforms.
·Counterfeit paper tags have been utilized to bypass toll payments, leading to substantial financial losses for toll authorities.
·Counterfeit tags have been used to conceal uninsured or unsafe vehicles, creating potential hazards for other motorists.
·Counterfeit paper tags hinder law enforcement efforts to trace vehicles and individuals engaged in criminal activities.
What is replacing Texas paper plates with?
Paper license plates are being replaced with metal plates, effective July 1, 2025. Previously, car dealers issued temporary paper tags to new car buyers, but starting July 1st, dealerships must provide metal license plates at the time of sale. These are standard issue black and white plates, although four other metal plate types have been introduced for specific situations:
Buyer provisional (purple): Refers to a buyer who has expressed interest in purchasing something but hasn’t fully committed yet. If you’re interested in buying a car, you’ve told the seller you’re considering it, but haven’t signed the paperwork or made the payment. That’s a “buyer provisional” situation.
·Dealer temporary (blue): A dealer temporary tag is a shortterm license plate given by an authorized vehicle dealer, allowing them to legally drive vehicles on public roads for specific reasons. These tags are typically used for test drives, transporting vehicles to auctions or other dealers, and providing loaner cars.
·Out-of-state buyer (green): An out-of-state buyer license plate is a temporary tag issued to someone who purchases a vehicle in one state but plans to register it in another. These plates allow the buyer to legally drive the vehicle while they complete the registration process in their home state.
·Limited use plate (red): A limited use plate refers to a vehicle registration or license plate that comes with restrictions on how the vehicle can be used. For example, the vehicle is used for agricultural production, utility work, or emergency services, provided it travels a limited distance and is operated during the daytime.
Existing paper tags issued before July 1st remain valid until they expire, with a grace period for updating to metal plates lasting until the end of August 2025. Private vehicle sales are not impacted by the change, and sellers still need to remove their plates and registration stickers, then submit a vehicle transfer notification to the TxDMV within 30 days. Buyers will need to obtain new plates from their county tax assessor’s office within 30 days.
The implementation of HB 718 also brought changes for car dealerships, requiring them to utilize the Texas DMV’s webDEALER system for processing title and registration applications electronically. The TxDMV has been providing training and resources to help dealers adapt to the new procedures and logistics involved in the transition to the new metal license plate system.