New Texas License Plate Law Replaces Paper Tags with Metal Plates

Paper license plates are officially a thing of the past for Texas.

Gov. Greg Abbott signed House Bill 718 on June 12, 2023, during the 88th Legislative Session, replacing all Texas paper license plates with metal ones.

The new law went into effect today. Here is what you need to know about HB 718.

What is the deadline for paper license plates in Texas?

All licensed car dealers must issue metal license plates to buyers at the time of sale starting July 1, according to HB 718. Temporary tags will no longer be available for printing.

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.

For example, according to the North Texas Tollway Authority (NTTA), more than 16 million vehicles traveled on North Texas toll roads without making payments, resulting in over $69 million in outstanding toll charges.

Grand Prairie Police Chief Daniel Scesney hopes HB 718 will rid the state of dangerous drivers. In November 2022, fellow Grand Prairie police officer Brandon Tsai died in a crash while in pursuit of a driver with a fraudulent paper tag.

Here is a list of complications that law enforcement and lawmakers have cited that led to the signing of this bill:

• 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. Dealers will now be required to issue temporary metal tags to replace the paper plates at the time of sale.

Here are the four limited metal tags and what each color means:

• 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 short-term 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.

How much are metal plates in Texas?

Here is what you need to know about license plates under HB 718:

• Metal license plates will be $10 and issued in place of the current one-trip and 30-day temporary permits.
• Car dealers must provide metal license plates issued by the Texas Department of Motor Vehicles at the time of vehicle sale.
• The new law guarantees that dealers can secure an adequate supply of license plates in advance, allowing them to sell vehicles without significant business interruptions caused by plate shortages.
• All licensed dealers must use webDEALER to process title and registration applications for vehicle sales.