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Important Information for Motor Vehicle Dealers Regarding Metal License Plates

The Texas Legislature passed House Bill 718 (HB 718) during the 88th Legislative Session in 2023 to address concerns related to the fraudulent use of paper license plates. The new law and associated administrative rules mandate significant operational changes for the Texas motor vehicle industry scheduled to take effect July 1, 2025.

What You Need to Know

Elimination of Paper Tags: Effective July 1, 2025, Texas motor vehicle dealers will no longer issue:
  • Buyer Tags
  • Internet Down Tags
  • Vehicle Specific Tags
  • Agent Specific Tags 
Instead of issuing Buyer Tags, beginning July 1, 2025, dealers will issue metal plates to vehicle purchasers at the time of sale. Unless another type is warranted by the vehicle type or use, dealers will issue the general issue license plates registered with the county on behalf of the buyer. More information will be provided in separate communications to dealers about their plate allocations and distribution of plates for this purpose. Beginning July 1, 2025, the eTAG system will no longer be available to dealers.


 
Registration sticker: The process of receiving the customer's permanent registration sticker will depend on whether dealers are deputized or not. Counties will continue to set the requirements for a dealer deputy. Dealers authorized to issue registration stickers can provide them to customers once the transaction is approved by the county in webDEALER. Those dealers that are not deputized may need to obtain the registration stickers for specific sales from the county tax office, as most do today. Each county tax office will determine how that internal process will look for dealers operating in their county.

New Dealer Temporary Plate: Dealers will be eligible to order new Dealer Temporary Plates for demos, loaner vehicles, transporting vehicles to and from auctions, or to facilitate servicing or repair of vehicles. The Dealer Temporary Plate will replace Vehicle-Specific and Agent-Specific Tags (also known as Dealer Temporary Tags). The Dealer Temporary Plate cannot be used for personal use. Dealers can maintain their currently issued Standard Dealer Plates for personal use and for all other business-related purposes such as demos, loaner vehicles, transporting vehicles to and from auctions, or to facilitate servicing or repair of vehicles. Dealers can continue to use their existing Standard Dealer Plates after July 1, 2025.


 
Dealer Temporary Plate Allotment: The number of Dealer Temporary license plates a dealer can order will be based on the type of dealer license held and the number of vehicles the dealer sold the previous year.
 
webDEALER Requirement: HB 718 mandates Texas motor vehicle dealers use webDEALER for processing title and registration applications electronically beginning no later than July 1, 2025. Dealers not using webDEALER to process these applications after July 1, 2025 will not be able to complete motor vehicle transactions.
 
Delivery of License Plates: License plates will be shipped to the licensed physical location associated with your dealer's license. If you have moved, please notify the department as soon as possible. You must submit an amendment application via eLICENSING to update your licensed physical location. You are required by law to notify the department of a change to your address via an amendment application no later than the 10th day after the date the change occurred. Click here to access your eLICENSING account.
 
Close Your Dealer License: If you want to close your dealer license and no longer engage in the business of buying, selling, or exchanging vehicles, you must submit an application to close your license via your eLICENSING account. Click here to access your eLICENSING account.

Please note that you are required to surrender any dealer license plates, temporary tags, dealer plate stickers or dealer plate receipts in your possession to the department within 10 days of closing your license. In addition, dealers who elect to close their license are responsible for ensuring that all outstanding titles are transferred to purchasers and that the registration is completed within 30 days of the sale or 45 days if seller-financed. Dealers must also collect motor vehicle tax from the purchaser and remit it to the tax assessor-collector, unless an exclusion applies. For more information on closing your license, you may contact the TxDMV at: (888) 368-4689.
 

Important Dates

  • April 2025: Dealers may submit dealer plate applications for the new dealer temporary plates via their eLICENSING account.

  • April 30, 2025: Administrative rule deadline for current motor vehicle dealers to complete webDEALER training. 

  • July 1, 2025: Begin using new dealer temporary plates, replacing Vehicle-Specific and Agent-Specific tags.

Dealers must use webDEALER to process title and registration applications for vehicle sales. IMPORTANT: Dealers without webDEALER accounts on July 1, 2025, will not be able to complete motor vehicle transactions. 

Please scan this QR code for more information on HB 718 and webDEALER training:


Monique Johnston
Division Director
Texas Department of Motor Vehicles
Motor Vehicle Division

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