PREPARING FOR PLATES :

How Texas Tax Assessor-Collectors Are Gearing Up for HB 718

As the automobile dealership industry in Texas prepares for one of the most significant registration changes in recent memory, county tax assessor-collectors across the state are taking the lead to ensure a smooth rollout. House Bill 718, passed by the Texas Legislature in 2023, will require metal license plates to be issued at the point of sale for vehicles purchased through licensed dealers, replacing the temporary paper tags that have long been the standard.

While the legislation was aimed squarely at curbing criminal misuse of temporary tags, its implementation has prompted a wave of preparation and planning at all three levels — state, dealerships, and counties.

Two Tax Assessor-Collectors — John R. Ames of Dallas County and Shay Luedeke of Bell County — offered insights into how their offices, and their dealer communities, are adjusting to the demands of the new law.

Their approaches highlight the shared concerns and creative solutions being pursued across counties of different sizes and resources, united by the same July 1, 2025 deadline.

A Shift in Process, A Push for Participation

At its core, HB 718 requires all dealers to process vehicle transactions through webDEALER, the Texas Department of Motor Vehicles’ (TxDMV) web-based platform, and issue metal license plates at the time of sale. Gone are the days of paper tags fluttering on newly purchased vehicles; under the new system, a buyer will leave the lot with their vehicle’s official metal plates already installed.

But implementing this system-wide change has meant ramping up training and outreach like never before.

“We’ve developed a webDEALER training program and have invited over 2,400 dealerships to attend,” said John R. Ames, who has served as the Dallas County Tax AssessorCollector since 2008. “We’ve been hosting that training for over a year now and offer it two to four times per month.”

Ames and his team have also updated signage in branch offices, distributed flyers, and contacted dealerships that had signed up for webDEALER but weren’t actively using it. Given that Dallas County processes over 650,000 title transfers per year — most through dealerships — the stakes are high.

Shay Luedeke, Tax Assessor-Collector for Bell County, which serves a population of about 400,000, has faced a similar challenge on a smaller scale.

His team has focused on direct communication with the approximately 270 licensed dealers in the county, regularly sending letters, emails, and webinar information to encourage early adoption of webDEALER.

“Our message is clear — if you wait until July 1, 2025, to start using webDEALER, it’s too late,” Luedeke emphasized.

Overcoming Resistance

The transition from in-person drop-off transactions to an all-digital system has not been universally welcomed. While some dealers, particularly larger franchise operations, were already familiar with webDEALER, many smaller independent dealers have been hesitant.

“Many dealers are resistant to moving on to webDEALER and want to continue the drop-off process,” said Ames. “Unfortunately, the RTS system will not allow us to accept in-person/drop-off dealer transactions after July 1.”

Both counties are taking a proactive approach to this issue. In Dallas, the tax office is trying to meet dealers where they are — offering simplified explanations and even queue-busting perks for early adopters.

“We explain that a dealership needs to think of webDEALER as a virtual tax office and nothing more,” Ames explained. “This seems to help put dealerships at ease.”

In Bell County, the strategy includes breaking down the transition into manageable steps.

“We’re encouraging dealers to start small — process a few transactions now and gradually transition all their work,” Luedeke said. “If they wait until July 1 to make the switch, they will likely experience complications, and neither county offices nor TxDMV will have the bandwidth to resolve every issue immediately.”

Streamlining Operations Internally

Preparation isn’t just about educating dealers — it’s also about optimizing internal workflows. In Bell County, Luedeke’s office has already centralized all webDEALER processing at the main office, eliminating redundancies and improving accuracy.

“We’ve expanded our webDEALER department and trained additional staff as more transactions shift to the system,” he noted.

Dallas County, already equipped with a dedicated webDEALER Operations Division, is taking a slightly different approach. Rather than adding staff, they plan to reassign current team members who previously handled in-person dealer work to support webDEALER.

Still, Luedeke is exploring future enhancements. One innovation under consideration in Bell County is the installation of smart lockers for dealer pickup. The idea: once dealer work is processed, it’s placed in a secure locker. Dealers receive a barcode via email, scan it in the lobby, and retrieve their documents without waiting in line.

“This would save both dealers and my staff valuable time,” said Luedeke.

Training the Troops

On the staff training front, both counties are actively preparing for the shift. Dallas County is reinforcing webDEALER expertise across its branch offices to ensure cross-functional support, while also referring dealers to TxDMV’s official online training resources. In Bell County, staff training goes hand in hand with process refinement.

“We’re reinforcing the importance of early adoption not just for dealers, but for our own teams as well,” said Luedeke.

Security and Plate Distribution

While webDEALER streamlines processing, it also opens new questions about fraud prevention and plate security — key drivers behind the legislation in the first place.

When it comes to enforcement, both Ames and Luedeke pointed to TxDMV and law enforcement agencies as the primary authorities. However, their offices are taking steps to help dealers prepare for secure distribution.

“We reiterate that dealerships need to verify their licensing information is updated with TxDMV — email, phone, business address,” Ames said. “This helps ensure inventory is delivered correctly.”

Luedeke noted that TxDMV is setting up a new Plate Distribution Center with an inventory management system to help securely manage distribution. Dealers will be required to store plates in locked areas, and TxDMV has promised increased compliance audits moving forward.

Dealer and Public Response

Reactions from dealers range from cautious optimism to outright concern. Smaller dealerships, in particular, worry about the cost of implementation and the learning curve.

“Dealers are understandably anxious, especially given the number of regulatory updates coming from the state,” Luedeke said. “Many are worried about how these changes will impact their bottom line.”

Public response has been more muted but generally favorable.

“The general public appears to be unaware of the new process for the most part,” Ames said. “But we’ve had no negative feedback from them either.”

That said, Luedeke anticipates some hiccups on the buyer side. “Buyers may face delays in receiving registration stickers after transactions are processed,” he said. “We’ll have to wait and see how that plays out.”

Advice for Dealers (and Buyers)

Both Ames and Luedeke stress the same key point: the time to prepare is now.

“Dealerships should get in touch with their County Tax Office as soon as possible and get on webDEALER,” said Ames. “The sooner they are familiar with the system, the better.”

Luedeke agrees — and offers a note of caution to vehicle buyers as well.

“Be patient,” he said. “This is a big change for everyone — TxDMV, tax offices, and dealerships.”

Looking Ahead

While both counties differ in size, resources, and dealer populations, their approaches demonstrate a common understanding of what successful implementation of HB 718 will require: communication, collaboration, and commitment to preparation.

Dallas County has been a longtime supporter of webDEALER and helped shape statewide processes in cooperation with TxDMV. Bell County, meanwhile, is using this moment to modernize and streamline its services in real time.

“We are encouraged by the potential new efficiencies that HB 718 could bring once fully implemented,” Ames said. “But we are also concerned about the volume of transactions moving through webDEALER and have been working with the DMV to strengthen the system’s capabilities.”

With less than a year remaining before the law takes full effect, the work continues across Texas. Counties big and small are gearing up for the switch — from paperwork to plates.

House Bill 718 (HB 718)

Replacing Temporary Tags with Metal License Plates

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. If you have not completed the training, you still need to so you can receive plates. You will be later in line.

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. Ondemand 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.

The Texas Legislature enacted House Bill 718 (HB 718) during the 88th Legislative Session in 2023 to address concerns related to the fraudulent use of paper license tags. The new law and associated administrative rules mandate significant operational changes for the Texas motor vehicle industry effective July 1, 2025.

The Texas Department of Motor Vehicles (TxDMV) is using all available avenues to provide the necessary information on operational changes and resources to support a smooth transition to the new policies, procedures, and logistics affecting motor vehicle dealers, county tax assessor-collectors, front-line law enforcement, and individuals buying or selling a motor vehicle. The TxDMV provides a FAQ page at https://www.txdmv.gov/HB718.

New License Plates:

Beginning July 1, 2025, Texas motor vehicle dealers will no longer issue the following from the eTAG system:

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. The current dealer metal plates remain permissible for personal use.

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 directto-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. eLICENSING User Guide for Dealer Plate Applications: Standard Dealer Plate & Dealer Temporary Plate

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: On the sale or transfer of a motor vehicle to a dealer, the dealer must submit a Vehicle Transfer Notification (VTN). Dealers can submit the VTN online through the department’s license plate system, currently known as eTAG.

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.