"Texas exempt license plate" refers to registration of a vehicle in Texas that does not require fee payment for registering. These plates are issued to a vehicle based on ownership of and use by government organizations.
Requirements for Issue
By Texas state statute 502.2015, certain vehicles can be registered using an exempt fee status. These vehicles must be used and owned by the U.S. government, state government, city or county governments or school districts. The vehicle must display on both sides the name of the organization in letters two inches high or larger or display the name in an emblem at least 100 inches square. These must be clearly visible from 100 feet away.
License plates issued under these guidelines will be marked with the word "exempt" and may only be displayed on vehicles that adhere to the statute.
An officer of the law may seize a vehicle using exempt plates if the vehicle is not in compliance with the statute. If an exempt license plate has been revoked, usually due to ownership change, the driver is considered to be driving an unregistered vehicle and can face legal penalties for failure to register.