House Bill 718: Texas Bans Paper License Plates Starting July 2025

What is HB 718, and Why Does It Matter?

House Bill 718, also known as HB 718, is a Texas law that will go into effect on July 1, 2025. It effectively abolishes temporary paper license plates in favor of permanent metal plates.

Until now, whenever anyone purchased a vehicle, a dealer would hand over a piece of paper to place in the rear window while the vehicle owner awaited the actual license plate.

But these paper tags were easy to fake or misuse. Law enforcement had a hard time tracking vehicles with fake tags, and many drivers used them to avoid detection.

With HB 718, Texas aims to:

• Prevent fraud and illegal use of temporary tags
• Improve tracking of vehicle ownership
• Make the system more secure and transparent for everyone

Who is impacted?

• Vehicle buyers vehicle buyers will leave with metal plates issued that same day.
• Dealers They need to update their systems and follow the new process.
• Law enforcement It will become easier to identify vehicles on the road.
• County tax offices They will manage new plate records and inventory.
• This change will apply across Texas for all vehicle sales, making the process faster, more secure, and less prone to abuse.

Key Changes Coming With HB 718

HB 718 brings a number of substantial changes to the way license plates are regulated in Texas. The objective is to arrive at a more secure and traceable license plate system and to make the following changes easy to understand: 

No More Paper Temporary Tags

There shall be no issuance of paper temporary license tags beginning July 1, 2025, for most vehicles in Texas. Paper temporary tags were often abused and easily reproduced, making it more difficult for law enforcement to guarantee public safety. 

Mandatory Use of Metal License Plates

Under the new law, metal plates must be issued immediately at the point of sale. This means that car buyers will receive real, trackable license plates from day one — no waiting period, no paper tags.

Effective date and transition timeline

The law will be effective on July 1, 2025, but preparation will begin way before that. Dealers and county tax offices are expected to:

• Update their inventory systems
• Train staff on the new plate process
• Stop ordering paper tags after a certain date in early 2025

Types of Plates Affected by the New Law

The following types of plates will now be metal and issued through the state’s inventory system:

• General Issue Plates
• Buyer Provisional Plates
• Out-of-State Buyer Plates
• Dealer Temporary Plates
• All these will now be tracked and managed digitally through the Inventory Management System (IMS).

Paper Tags That Will Still Be Allowed (Limited Use)

Although most paper tags are being phased out, a few types will still be allowed in limited situations, such as:

• Vehicle transit permits
• 30-day permits for specific temporary needs
• Special-use paper tags as approved by the state
• These exceptions are strictly controlled and will require proper documentation.

Law enforcement will benefit from real-time tracking of issued metal plates, reducing fraud and helping identify stolen vehicles. County tax offices will also assist with inventory validation and shipment checks.

Effect on Automotive Dealers

For Texas motor vehicle dealers, House Bill 718 creates major changes in the process of handling and issuance of license plates. The dealerships would necessarily have to change their respective processes and systems to cater to the new requirements to remain compliant. Here are the changes all motor vehicle dealers should note:

How to Order New Metal Plates

Dealers must now order metal license plates instead of paper tags. These plates will be issued through the state’s authorized system and shipped directly to dealers. Orders must be placed using the updated platform, and quantities must match the dealer’s vehicle sales volume.

Here is a quick process dealers will follow:

• Log in to the IMS portal
  
• Order metal plates based on vehicle sales
  
• Track the shipment from the dashboard
  
• Receive and assign plates to sold vehicles

Inventory Management System (IMS) Guidelines

All metal plates will be managed through the Inventory Management System (IMS). Dealers will:

• Log in to IMS to order and track plate shipments
• Assign plates to vehicles at the time of sale
• Record plate use to ensure full traceability
• The system helps prevent fraud and ensures that every plate is tied to a valid sale.

Replacing Dealer Temporary Tags

Old dealer-issued paper temporary tags will no longer be valid after July 1, 2025. Dealers must:

• Stop using old tags before the deadline
• Switch to the metal plates for all transactions
• Ensure that their dealership staff is trained on the new process

What Dealers Must Do Before July 1, 2025

To prepare, dealers should:

• Sign up for or verify access to the IMS platform
• Complete any state-mandated training
• Order their first batch of metal plates in advance
• Communicate changes clearly to customers
• Pro Tip: Do not wait until the last minute — early preparation will prevent delays in processing sales.

Internet Outages & Technical Guidance

If a dealer experiences internet outages or system issues, backup protocols will be in place. The state may allow limited offline access or provide emergency support. Dealers should:

• Save important IMS documents offline
• Keep technical support contact info handy
• Train staff on what to do during outages

Resources and Support for Dealers and the Public

The Texas DMV and relevant authorities are providing some very useful materials to assist dealers, tax offices, and the public with the transition to HB 718. The goal is to help with the transition, reduce confusion, and ensure compliance.

Training Videos and Manuals

The state is providing step-by-step training guides, including:

• Video tutorials on how to use the Inventory Management System (IMS)
• Printable manuals for web DEALER account setup
• Quick-reference PDFs covering how to assign and manage metal plates

Important Milestones (March to July 2025)

Here is a quick summary of the important milestones that are relevant to dealers and the public:

• Staying aware of these deadlines is the best way to avoid penalties or registration delays.

Final Thoughts: What Should You Do Now?

HB 718 is a big shift in how Texas handles vehicle license plates — and it is happening soon. Whether you are a dealer, buyer, or part of a tax office, taking action early is the best way to avoid stress later.

Here is what you should do:

• Dealers: Set up your IMS and webDEALER accounts, complete training, and start ordering metal plates ahead of time.

• Buyers: Know that from July 1, 2025, you will get metal plates directly — no more paper tags.

• Law enforcement and offices: Make sure your team understands the new tracking system and validation steps.

• This law is all about making the system more secure and reducing fraud. The earlier everyone gets on board, the smoother the transition will be.

Frequently Asked Questions About HB 718

Q1: When does HB 718 go into effect?
A: July 1, 2025.

Q2: Will I still get a paper tag when I buy a car?

 A: No. You will get a metal plate at the time of purchase.

Q3: What if my dealership is not ready by July?

 A: You may face delays or penalties — register early and complete training.