House Bill 718 Implementation

webDEALER Requirement: HB 718 requires Texas motor vehicle dealers to use webDEALER for processing title and registration applications electronically. IMPORTANT: Dealers without webDEALER accounts on July 1, 2025, will not be able to complete motor vehicle sales transactions. Dealers should coordinate with county tax assessor-collectors' offices for system access to webDEALER ahead of the deadline.

webDEALER Access, Use, and Training Deadline: Dealers are required by Texas Administrative Code rules to complete webDEALER training by April 30, 2025, unless they have been active webDEALER users for more than six months and submitted more than 100 transactions as of October 1, 2024.

webDEALER Training: To support dealers and county staff in meeting the training requirement, TxDMV offers multiple webDEALER training sessions monthly, available both online and in person. On-demand video training in English and Spanish is also available. Check the TxDMV calendar page at www.TxDMV.gov/calendar for dates and registration information for monthly training sessions.

Metal Plate Implementation Training:Guidance on the implementation of the new metal license plate requirements is also available in English: Your Complete Guide to Metal Plate Implementation

• Buyer Tags
• Internet Down Tags
• Vehicle Specific Tags
• Agent Specific Tags

Instead of these temporary tags, dealers will issue metal plates at the time of the sale. In most cases, general issue license plates will be issued and registered in the name of the buyer.

Implementation of HB 718 created four limited-use metal plates to be used by dealers or county offices for specific temporary vehicle registration needs:

New Metal License Plates

	Buyer Provisional Plate	For short-term use if dealers lack the required plate type for the vehicle in their inventory.
	Dealer Temporary Plate	For dealers’ business-related uses, such as test drives, loaner vehicles, or transporting the vehicle. Personal use of vehicles with these plates is prohibited.
	Out-of-State Buyer Plate	For vehicles sold to out-of-state buyers.
	Temporary Registration Plate	For temporary registration, replacing one-trip and 30-day permits (issued by county tax offices and TxDMV regional service centers).

These new license plates will not replace current metal dealer license plates or the general issue plates that dealers will most frequently issue.

Additionally, HB 718 will modify the process of issuing general issue license plates. Dealers will receive an allocation of general issue license plates directly to their licensed location that will be issued to a vehicle at the time of sale.

Plates Remain with Vehicle: When a consumer sells or trades-in a vehicle to a dealer, the general issue license plates registered to the vehicle will stay with that vehicle. Dealers must store the plates securely and assign them to the next person who purchases the vehicle. Specialty and personalized plates will still be retained by the customer.

License Plate Distribution: For most plates, HB 718 transitions from the current distribution model of license plates delivered to dealers by county offices to a direct-to-dealer model for general issue plates. Plates will be produced by the Texas Department of Criminal Justice (TDCJ) and shipped to a centralized distribution warehouse operated by a TxDMV contractor. A sufficient supply of plates will be maintained in the warehouse for distribution year-round to meet sales demand.

Dealers will order, track, and assign plates easily and directly through a new web-based, accessible Inventory Management System (IMS).

IMPORTANT: Dealers must complete webDEALER training or be active users of webDEALER before they can receive plate shipments.

Dealers will order Dealer Temporary Plates through the eLICENSING system, just like the current process for existing Dealer Plates distributed by TxDMV.

Plate Storage and Security: Rules adopted by the TxDMV Board in October 2024 require dealers to secure plates in a locked room, closet, or one or more securely locked, substantially constructed safes or steel cabinets bolted to the floor or wall. Dealers must control employee access to the storage location to ensure plates are used only for legitimate sales.

Vehicle Transfer Notification: Motor vehicle dealers must submit a Vehicle Transfer Notification (VTN) on behalf of retail customers within 30 days of the sale or transfer.

Dealer Compliance: The new Dealer Compliances Services Section in the TxDMV Enforcement Division will inspect dealer locations to verify compliance with license plate and premises requirements. Staff will offer education and guidance to dealers found non-compliant as they adapt to the new requirements.

webDEALER Requirement: HB 718 requires Texas motor vehicle dealers to use webDEALER to submit title and registration applications to their county tax assessor-collector's office beginning July 1, 2025.

webDEALER Training: To support county tax office staff and dealers, TxDMV offers multiple webDEALER training sessions each month, with online and in-person options. In addition to live training, an on-demand video training option is available in English and Spanish so dealers and their employees can complete the training at their convenience. Look for training dates and registration information on the TxDMV calendar page at www.TxDMV.gov/calendar.

One-Trip and 30-Day Permits: The law eliminates the 30-day and one-trip paper permits issued by county tax offices and TxDMV Regional Service Centers (RSCs). Beginning July 1, 2025, in place of paper permits, counties and RSCs will issue metal Temporary Registration License Plates with an expiration sticker on the plates.

Combating Crime: The Texas Legislature passed HB 718 to address law enforcement concerns related to the fraudulent use of temporary tags and associated motor vehicle crimes.

Elimination of Paper Tags: The new law eliminates the following six temporary tags:

• Buyer Tags
• Internet Down Tags
• Vehicle Specific Tags
• Agent Specific Tags
• One-Trip Permits
• 30-Day Permits

New Metal License Plates: Law enforcement personnel should familiarize themselves with the four new metal license plate types effective July 1, 2025:

New Metal License Plates

	Buyer Provisional Plate	For short-term use if dealers lack the required plate type for the vehicle in their inventory.
	Dealer Temporary Plate	For dealers’ business-related uses, such as test drives, loaner vehicles, or transporting the vehicle. Personal use of vehicles with these plates is prohibited.
	Out-of-State Buyer Plate	For vehicles sold to out-of-state buyers.
	Temporary Registration Plate	For temporary registration, replacing one-trip and 30-day permits (issued by county tax offices and TxDMV regional service centers).

Consumers buying or selling a vehicle in Texas on or after July 1, 2025, may notice changes in how their license plates are issued or transferred.

Buying a Vehicle from a Dealer: Customers who purchase a vehicle from a Texas dealer will receive metal license plates at the time the dealer delivers the vehicle, allowing them to immediately display the plates and operate the vehicle while awaiting their registration window sticker.

Trading In a Vehicle to a Dealer: Effective July 1, 2025, when customers trade-in a vehicle, the dealer will keep the license plates registered to the vehicle (unless they are specialty or personalized plates), store them securely, then assign them to the new buyer when the dealer sells the vehicle at a later date. For Texas-titled vehicles, dealers will be required to submit a Vehicle Transfer Notification (VTN) to TxDMV notifying the department of the date the original customer sold the vehicle so their vehicle record can be updated.

Buying or Selling a Vehicle in a Private Sale: In private sales, the buyer will keep the license plates and register the vehicle in their name with their county tax assessor-collector's office. Sellers of Texas-titled vehicles should submit a Vehicle Transfer Notification (VTN) within 30 days of the sale to update their motor vehicle record. To process the VTN the seller is required to submit the buyer’s name and contact information – which should be collected by the seller at the time of sale.