Texas Transportation Code - TRANSP § 504.901. Removal and Transfer of License Plates

(a) On the sale or transfer of a motor vehicle to a dealer who holds a general distinguishing number issued under Chapter 503, the dealer shall remove each license plate issued for the motor vehicle.  The dealer shall transfer each removed license plate to a motor vehicle if that motor vehicle is purchased from the dealer and the license plates are appropriate for the class of vehicle to which the plates are being transferred.

(b) On the sale or transfer of a motor vehicle to a person who does not hold a general distinguishing number issued under Chapter 503, the seller shall remove each license plate issued for the motor vehicle.  The removed license plates may be transferred to another vehicle titled in the seller's name if the license plates are appropriate for the class of vehicle to which the plates are being transferred and the seller obtains:

(c) A license plate removed from a motor vehicle that is not transferred to another motor vehicle must be disposed of in a manner prescribed by the department not later than the 10th day after the date the license plate is removed from the motor vehicle.