HB 718

Share & Bookmark, Press Enter to show all options, press Tab go to next option
Print

Kristin-Small

Office of the Tax Assessor Collector
Kristin R. Bulanek
 Brazoria County Tax Assessor Collector

 

Overview

House Bill 718 (HB 718), passed during the 88th Texas Legislative Session in 2023, represents one of the most significant changes to Texas Department of Motor Vehicles (TxDMV) operational policy. The bill is an assertive response to eliminate fraud opportunities with paper tags and permits by replacing many of them with metal plates.

The bill eliminates six (6) distinct paper tags used in the current registration process:

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

These tags and permits will be replaced with four (4) new limited-use license plate types:

  • Buyer Provisional Plate: Used when requested plate type is not in inventory.
  • Dealer Temporary Plate: Used by dealers for vehicles pending sale.
  • Out-of-State Buyer Plate: Used for vehicles sold out-of-state.
  • Temporary Registration Plate: Used for temporary registration.

These new license plates will be used to cover specific temporary vehicle registration needs and will not replace metal dealer license plates or the standard, general issue license plates that will be issued to individuals purchasing new and used vehicles.

The requirements and provisions of the bill take effect on July 1, 2025. 

Change in Disposition of License Plates at Vehicle Transfer

The bill requires that standard, general issue license plates issued to a vehicle remain with the vehicle when sold or transferred to a new party. Individuals who have purchased personalized or specialty plates will be allowed to retain possession and ownership of those plates, which they may request to be assigned to another vehicle.

As is currently recommended, it will become increasingly important after July 1, 2025, that individuals transferring or selling a vehicle complete a Vehicle Transfer Notification (VTN) to report the transfer of the vehicle. This process is intended to help protect the seller from liability for criminal or civil acts involving the vehicle and the person(s) or entity taking ownership. Licensed Texas dealers are required by the bill to submit a VTN at the time of sale or transfer.

Electronic Processing of Dealer Transactions

This bill requires Texas licensed dealers to use TxDMV's webDEALER system to electronically process title and registration for vehicle sales with county tax offices. Dealers without webDEALER accounts and plate inventories WILL NOT be able to complete vehicle sales transactions beginning April 1, 2025. TxDMV offers training on the webDEALER system. See the TxDMV events calendar for training information. TxDMV also offers on-demand training for dealers in English or Español. Dealers are encouraged to reach out to the Brazoria County Tax Office to begin coordinating with us on training efforts and to gain access to webDEALER.