Dealer Tags

Effective October 1st 2011, Alabama Act 2011-554 regarding Dealer License Plates will be in effect. This law was designed to stop the abuse of dealer tags. In the past, there was no limit to the number of plates a “dealer” could buy.

Act 2011-554 specifies:
  • Dealer must provide dealer regulatory License
  • Prohibits wholesalers, reconditioners, and rebuilders from buying dealer plates
  • New dealer transit plate (fee same as dealer plate)
  • Limits the number of dealer plates
    • New Dealer              25
    • Used Dealer             10
    • Motorcycle dealer    10
    • Dealer transit           10 (in addition to standard dealer plates)
    • Dealers with 1,500 or more title transactions during the previous year may purchase additional plates. A list of qualified dealers will be posted on the MVD website
  • Limits use of plates to vehicles:
    • Owned by dealership and held in inventory
    • Used by prospective purchasers, owners, partners, corporate officers, and employees of dealership
    • On temporary loan to a customer whose vehicle is being serviced or repaired by dealership
    • High school driver’s education
  • May NOT be displayed on:
    • Service vehicles
    • Tow trucks
    • Rental vehicles
    • Loaned vehicles
    • Vans
  • Increases Penalties for misuse
    • $100 for 1st offense
    • $500 for 2nd and subsequent offense
    • $1,000 for willful misstatements or false documents
  • Prohibits license renewal for failure to pay outstanding assessment