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I always assumed they destroyed them somehow. Hopefully they recycle them as being aluminum pretty much everywhere I know, it would be throwing money away not to. Would be interesting to know for sure though.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We don't turn them in, just keep and discard or decorate the garage wall. They have to be replaced every 5 years now ($15) due to "deterioration of the reflective coating."
Here in VA, most plates that are turned into DMV are turned in for refunds of fees.
They are recycled and the State makes a couple hundred thousand a year doing it. I don't know if they have a deal with a particular recycler as far as security is concerned or not (probably not).
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