Effective January 1, 1998 license plates are to be removed by the registrant upon sale or disposal of the vehicle, for possible transfer to a replacement vehicle. Also beginning August 1, 2000, owners may be entitled to a pro rata credit for property classes paid for the remainder of their current tax year. If the vehicle is sold or reassigned, the owner may bring their supporting documents and apply for a tax credit voucher within one year.

 In Houston County the transfer fee is $3.25. In addition to paying the transfer fee, county officials are required to collect any outstanding and current property taxes on the newly acquired vehicle. Also, if the newly acquired vehicle was purchased from someone other than a licensed Alabama motor vehicle dealer, state and local sales or use tax may be due. The State of Alabama has an automotive sales tax rate of 2%. Houston County's rate is .50%. The municipal sales tax rates range from 0.50% to 4.45%.