Texas gives private property owners broad authority to remove unauthorized vehicles — but that authority comes with specific legal requirements. Fail to meet them and you expose yourself to liability, fines, and vehicles being returned at your expense.
Here's what every Texas parking lot owner needs to know.
The Governing Law: Texas Transportation Code Chapter 2308
Chapter 2308 of the Texas Transportation Code is the primary law governing private property towing in Texas. It covers:
- Who can authorize a tow
- What signage is required
- What fees can be charged
- What notice must be given after a tow
- How a vehicle owner can retrieve their vehicle
The law is enforced by the Texas Department of Licensing and Regulation (TDLR), which licenses towing companies and investigates complaints. Property owners are not licensed by TDLR, but they can face civil liability if a tow is conducted improperly.
Signage Requirements
This is where most property owners get into trouble. Texas law requires specific signage before you can legally tow a vehicle from private property.
| Requirement | Specification |
|---|---|
| Minimum sign size | 18 inches wide × 24 inches tall |
| Placement | At each entrance to the parking facility |
| Height | Between 5 and 8 feet above ground |
| Required content | Statement that unauthorized vehicles will be towed at owner's expense |
| Towing company info | Name and phone number of the towing company |
| Lighting | Must be legible at night (illuminated or reflective) |
Important: Some Texas cities (Houston, Dallas, Austin, San Antonio) have additional local signage requirements that are stricter than state law. Always check your city's municipal code before posting signs.
Who Can Authorize a Tow
Under Chapter 2308, a tow can be authorized by:
- The property owner
- A property manager or authorized agent
- A parking enforcement officer employed by or contracted with the property
- A law enforcement officer
The towing company itself cannot authorize a tow on private property without a prior written agreement with the property owner. Consent tow agreements must be in writing and kept on file.
Towing Fee Caps (TDLR Regulated)
Texas caps the fees a towing company can charge for a private property tow. As of 2026, the TDLR maximum rates for a Class A vehicle (standard passenger car or light truck) are:
| Fee Type | Maximum (Class A) |
|---|---|
| Basic tow (within 5 miles) | $255 |
| Daily storage | $20/day |
| After-hours release | $50 additional |
| Dollying/skidding | $50 additional |
These are maximums — towing companies can charge less. Property owners do not receive any portion of the towing fee; it goes entirely to the towing company.
Notice Requirements After a Tow
Once a vehicle is towed, the towing company must notify law enforcement within 30 minutes. The vehicle owner can retrieve their vehicle at any time, and the storage facility must accept payment by cash, credit card, or debit card.
The towing company must provide a written receipt that includes the tow date, time, location, and itemized fees. Failure to provide this receipt is a violation of Chapter 2308.
What Can Get You in Trouble
- Towing without proper signage. If your signs don't meet state requirements, the tow is illegal and the vehicle owner can sue you.
- Towing a vehicle that was legally parked. If you tow a vehicle that had a valid permit or was parked in a public space, you're liable.
- Using an unlicensed towing company. All towing companies operating in Texas must be licensed by TDLR. Verify your towing company's license before signing a consent agreement.
- Blocking vehicle retrieval. You cannot prevent a vehicle owner from retrieving their vehicle at any time, even if the storage fee is unpaid. (The towing company can hold the vehicle until fees are paid, but cannot deny access.)
City-Specific Rules to Know
Houston: Requires a 24-hour notice period for vehicles parked in residential areas before towing. Commercial lots are exempt from this requirement.
Austin: Has additional requirements for towing companies operating within city limits, including a mandatory 15-minute wait after calling a tow truck before the vehicle can be removed.
Dallas: Requires towing companies to photograph the vehicle in place before towing, documenting the violation.
TPMA Recommendation: Have your signage reviewed by a Texas attorney familiar with Chapter 2308 before you begin enforcement. A $500 legal review can prevent a $5,000 lawsuit.