Texas bill aimed at eliminating paper license plates to take effect July 1

House Bill 718 will let car dealerships keep metal plates on hand to give to people who buy vehicles, eliminating the need for temporary paper plates.

SAN ANTONIO — House Bill 718 now in effect in Texas, which means you’re going to see less paper tags on the roads.

It was signed into law in 2023 and now dealerships won’t be able to print out paper tags for car purchases.

Car buyers are going to get a permanent black and white metal license plates at the dealership which look a lot nicer and will hold up better than the paper tags.

The Texas Department of Motor Vehicle’s new system will track every plate to a name and address.

Dealers will give buyers a purple plate when the correct plate type isn’t available in their inventory. Blue plates are for loaner cars or cars used in test drives. Green plates are for out of state buyers who will register the car in another state. Red plates will being given out by county tax officers and the Texas DMV for temporary registration.

This new system was signed into law to cut down on drivers exploiting the paper tag system to avoid registering their vehicles and toll tags.

We spoke with the general manager of Adam Sports Car on Hildebrand Road and he says its a good plan to prevent crime.

“Anyone that has paper plates on the streets they could just take a picture, print it out, and anyone could use those plates,” said George Abdallah, Adam Sports Car General Manager. “There could be little mistakes that happen at first but once we get to know more about the system it will be easier for all of us dealers.”

Now that dealerships can no longer issue paper tags, any Texas paper tag on the road after September will be expired.

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