Texas House Bill 718 requires all motor vehicle dealers operating in the state to issue metal plates starting on July 1, 2025, eliminating the use of temporary paper tags. The bill was enacted to stop the epidemic of fraudulent temporary tags plaguing the state. Dealers must use webDEALER to electronically process all title and registration applications. Additionally, depending on the county you are operating in, you may need to purchase and maintain a $100,000 surety bond (in addition to the $50,000 bond required for used dealers).
In this article, we break down what the new requirements implemented as a result of House Bill 718 mean for your dealership, and explain how to obtain the requisite $100,000 License Plate and Registration bond .
Dealers that do not have access to a webDEALER account by July 1 will be unable to sell motor vehicles. To create a webDEALER account, coordinate with your county tax assessor/collector’s office. You will also need to attend two, four-hour online or in-person training sessions before being granted an account. Register for a training session conducted by the DMV here.
Certain counties also require dealers that store license plates and registration stickers on their premises to purchase and maintain a $100,000 surety bond. The bond protects the county if a dealer misuses these plates/stickers and/or fails to pay all required taxes and fees. Your county tax assessor’s office will notify you if you are required to purchase the $100,000 bond.
You can obtain your $100,000 bond with Jet for as low as $750 per year (or you can pay just $75 per month) by completing the below application.
Used dealers in need of the $50,000 license bond can apply online here.
In lieu of temporary tags, dealers will be required to issue metal plates for all motor vehicles at the time of sale. That means that dealers will no longer be able to issue the following tags from their eTAG system:
Buyer Tags
Internet Down Tags
Vehicle Specific Tags
Agent Specific Tags
Instead, the state has created the following limited-use metal plates to be used as needed:
Buyer Provisional Plate - To be used if the dealer does not have the required plate type in their inventory
Dealer Temporary Plate - Used by the dealership for business purposes (test drives, loaner vehicles or vehicle transport)
Out-of-State Buyer Plate - Used for vehicles sold to out-of-state buyers
Temporary Registration Plate - Used for temporary registration in replacement of one-trip and 30-day permits (provided by county tax offices and TxDMV regional service centers)
The DMV has published an overview of the new metal plate requirements, which can be accessed at the DMV Website.
All dealers will be allocated general-use license plates that will be provided to a vehicle at the time of sale. Dealers must store these plates in either a locked room, closet, or a safe/steel cabinet bolted to the floor or wall. Whenever a consumer sells or trades in a vehicle to a dealer, the dealer must store that vehicle’s general use plate and assign it to the next person who purchases the vehicle. These new processes put the onus of issuing plates to buyers on the dealer themselves, as opposed to the county in which the vehicle is purchased.
The Texas Legislature determined it was necessary to eliminate temporary paper tags to prevent criminals from abusing this system to commit crimes and evade law enforcement. Unfortunately, these changes primarily affect dealers such as yourself who are now responsible for storing and issuing metal plates and obtaining additional bond coverage.
At Jet, we make obtaining the $100,000 Texas License Plate and Registration Bond easy. Our underwriting weeds out the small percent of bad apples that cause all claims, ensuring that honest dealers don’t have to subsidize their competition with inflated premiums. We believe trustworthy dealers with solid practices should pay less for their surety bond.
If you need a bond, click the below button and fill out our online application or give our dedicated dealer department a call at (855) 427-9898.
Tim Rotondi is the Head of the Dealer Department for Jet Insurance Company. Tim manages the marketing strategy for the unit, develops underwriting processes and assists dealers in obtaining their bonds.
Derek Nicolas is the Head of New Business for Jet's Dealer Department. Derek oversees underwriting new bond submissions and assists with claims handling.
Daniel Golden is the Head of Renewals for Jet's dealer team. Dan ensures dealers' bond renewals are quoted on time and is responsible for following up on outstanding quotes.
Caleb Speed is an underwriter for the dealer team. Caleb reviews new submissions and assists with renewal and follow up efforts.