A new law now requires Texas vehicle dealers to issue metal license plates instead of temporary paper tags.

Temporary paper license plates are disappearing from Texas vehicles. Under a law passed by the 88th Legislature two years ago, Monday, July 1, is the date for the change in how cars, trucks and motorcycles are registered when sold.

House Bill 718 was sponsored by Rep. Craig Goldman, R-Fort Worth, who was elected last year as Texas’ 12th District congressman.

The analysis of the bill said the temporary paper license plate system in Texas has provided criminals an easy way to disguise vehicles and avoid prosecution while creating a $200 million black market in counterfeit tags.

The new law requires vehicle dealers to issue metal license plates directly to buyers of new and used vehicles. 

Consumers will receive metal license plates instead of paper temporary tags, driving off the lot with their plates already in place. Until their registration sticker arrives from their county office, customers must keep their buyer’s plate receipt in the vehicle to be able to verify the purchase and pending registration.

The Texas Department of Motor Vehicles said when consumers sell or trade in a vehicle with general issue plates, dealers may transfer the plates to another vehicle sold within 10 days, if the plates match the appropriate vehicle type. Consumers with specialty license plates will keep their plates.

When selling to an individual, the owner should remove the license plates and registration sticker from the vehicle when they deliver the vehicle to the buyer. 

The seller can request to transfer the plates to another vehicle they own – if it is appropriate for the vehicle type — by visiting their county tax assessor-collector’s office. 

Sellers should submit a Vehicle Transfer Notification to the TxDMV within 30 days of the sale of the vehicle. 

Buyers must submit a title and registration application at their county tax assessor-collector’s office and obtain new plates to register the vehicle in their name within 30 days of purchase.

The new law eliminated the buyer’s temporary tag database and required the TxDMV to manage and maintain a secure, real-time database for law officers to monitor dealer-issued license plates and access information about the buyers.

It also prohibits anyone from driving a vehicle with improperly issued dealer plates. Only dealers are allowed to issue plates in connection with the sale of a vehicle.

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