No more paper tags in Texas: Car buyers to get metal plates upon purchase

New Texas license plate law taking effect

A new state law takes effect Tuesday requiring you get permanent metal license plates the same day you buy a car. FOX 26's Consumer Reporter Heather Sullivan explains how this will work for buyers.

HOUSTON - The days of temporary paper tags on Texas cars are ending.  A new state law takes effect Tuesday, July 1, requiring that car buyers receive a permanent metal license plate when they buy the car.

The Texas DMV sent us a statement saying it has been shipping permanent metal license plates to car dealers since May and offering training sessions for months.

Texas paper tags being abandoned

Why you should care:

The change is aimed at ending a paper trail of crime. Crooks made millions of dollars selling fake temporary tags on the black market for cars and trucks in Texas.

RELATED: Texas says goodbye to temporary paper license plates in July

Investigators say they were being used on cars to commit crimes, or by drivers to evade tolls, speed cameras, or being caught without insurance.

The new state law will change the way you buy and sell cars.

What's next:

When you buy from a dealership, it will put a permanent metal plate on the car and immediately register it in your name.

Until your registration sticker arrives from your county tax office, you must keep the buyer's plate receipt in the car in case you're pulled over and need to prove ownership.

If a dealer doesn't have enough plates on hand, it can issue one of four new, temporary metal plates in four different colors for different situations.

Blue is for business use only, such as transferring a car from one dealer to another. Green is for out-of-state buyers. Red is for one-day or 30-day temporary plates, and purple is for when specific plates are not available, such as plates for disabled people.

If you sell or trade-in a car at a dealership, the dealer can transfer the plate to another vehicle of the same class that is sold within 10 days. But consumers with specialty or personalized license plates will keep them.

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If you sell a car privately, the DMV says you should remove the plates and registration sticker, and submit a Vehicle Transfer Notification to the DMV within 30 days.  The seller can transfer the plate to another vehicle they own, or to the new owner.  Buyers must submit a title and registration application to their county tax assessor and obtain new plates to register the vehicle within 30 days.

For drivers who currently have paper tags on their vehicles, the law says it will stop being legal 60 days from July 1.