South Dakota Residency (my experience)

phaedrus · Dec 7, 2011

Greetings:<div> </div><div>Although I am new to the group I should disclose that I have spent the last 10+ years in South Dakota and grew up in Texas.</div><div> </div><div>South Dakota is the easiest state to set up and maintain residency.  Let me outline some points for you to consider that you may not find on a website.</div><div> </div><div>Getting your drivers license address to be the same as your mail drop is easy.  There are some basic procedures/rules but not cumbersome.</div><div> </div><div>For those that want a concealed weapons permit please research where South Dakota has reciprocity.  Note that South Dakota "DOES NOT" require a class or other training for a permit.  All you do is fill out a one page form at the county sheriff and for a small fee ($10 I think) you get it in about 2 weeks.  The permits are good for 5 years.</div><div> </div><div>License plates can be renewed by mail.  South Dakota "DOES NOT" require proof of insurance to register a vehicle, transfer a title, or renew plates.</div><div> </div><div>0 state income tax and a very inexpensive place to live should you decide to live here for a summer etc.</div><div> </div><div>Private mail box options are plentiful of both private and franchise operations (i.e. UPS store)</div><div> </div><div>Auto insurance is extremely reasonable here compared to Texas.  Keep in mind for liability with very high coverages my auto insurance is $50 per month on my 2006 car.  If I carried full coverage it would only be about $30 more per month.</div><div> </div><div>If you have questions about SD residency feel free to ask.  I am not an accountant or a lawyer but probably know the answer or no someone who does.</div><div> </div><div>If you need referrals of whom to do business with I may be able to assist you.</div>

toupalumma · Jan 4, 2012

Thanks for the info, phaedrus. Hubby and I are planning to sell our house in Missouri and become vehicle dwellers sometime in the next six months. We are both about to retire from our full-time jobs, as well, in that same time frame.

If we do choose SD for our state of residence, which does seem like a good idea, I assume we would need to make at least one trip to the state to get a mailing address, drivers licenses, vehicle license, etc. Am I correct? If so, what city or town would be the best for that?

stude53 · Jan 5, 2012

Here is another vandwellers experience using SD as a residency state. <a href="http://www.tosimplify.net/2010/09/relocating-to-south-dakota.html" target=_blank>http://www.tosimplify.net/2010/09/relocating-to-south-dakota.html</a> Seems like he made a good choice. Bob

Seraphim · Jan 10, 2012

Thanks for the info and the link.
Never been to SD.

Is it possible to establish residency in one state while owning a physical home in another? Not sure if there would be any benefits, but thought I'd ask

stude53 · Jan 10, 2012

Interesting question, Seraphim I looked it up and found this article.....<a name="when" target="_blank" target=_blank></a>For vacation home tax break, IRS insists youhave fun By <a href="http://www.bankrate.com/brm/ask_editors.asp" target="_blank" target=_blank>Cora Barnhart</a> Ã¢Â€Â¢Bankrate.com Many taxpayers know that <a href="http://www.bankrate.com/brm/itax/news/20030207a1.asp" target="_blank" target=_blank>homemortgage interest</a> is one of their most valuable deductions. They're lesslikely to be aware of the rules for deducting interest paid on a vacationdwelling.  Deductible ornot? To qualify for this tax break, the Internal Revenue Service insists thatyou have fun. You can't just be all business all the time.In other words, for asecond property to qualify for the home mortgage interest deduction, thetaxpayer must use the additional home for personal purposes during the year. Suppose a couplehas a second home they rent out all year, and they never use it for their own vacations. Sorry -- no fun, no taxbreak. The property wouldn't qualify as a second home for the purpose of thehome mortgage interest deduction. The IRS will categorize it as rental propertyif it is rented, or investment property if it isn't rented.Whena home isn't a home Don't fall into the trap of assuming that a second home has to consistof the traditional combinations of bricks, mortar and/or wood. A second home can include a time share unit, a boat or a recreational vehicle. The catch? These dwellings must include sleeping, cooking and toilet facilities. Interest paid on your second home is deductible if you meet these prescribed tests.So, if you're on the line between a boat or rv with and without a head and galley, think twice. Going with the bathroom facilities could mean the difference between deductible and nondeductible interest.For more examples and further explanation, see IRS <a href="http://www.irs.gov/pub/irs-pdf/p527.pdf" target="_blank" target=_blank>Publication 527</a>.

stude53 · Jan 10, 2012

And who is to say which one, the RV or the stix and brix is the "second" home?

Seraphim · Jan 11, 2012

I was curious more about state income taxes. Ohios are high. It can't be this easy, but to transfer residence to SD for purposes of state tax, etc. and maintain the current house in stasis. - call it a vacation home. Not pay income tax in ohio. Might be difficult convincing Ohio its no longer a primary residence.

Still looking for alternatives to selling/leasing.

gipsyweaver · Jan 11, 2012

Keep in mind property taxes. If a house is no longer your primary residence, you will probably lose any exclusions the state allows for them. For instance, if the state has a homestead exemption for the first $40,000 in assessed value, but it's no longer your primary residence, you'll start paying property tax on that $40,000 in value. And it may be taxed at a different, usually higher rate, if it's no longer the family home. If you rent it out but are no longer a state resident, you'll probably owe state income tax on the rental income, possibly without deductions allowed to residents. Also, check and make sure that information on vacation homes is still current. A lot of deductions on things like that went away in the last 7 or 8 years. The way I understand it, most of the advantages to establishing residency in a place like SD is for those who have no stick-and-brick address at all. I could be wrong, of course...

Seraphim · Jan 12, 2012

Thanks gipsy. Good thoughts. I'll check out that exemption information. I think the experienced members here have convinced me that using the house for a rental would be a last choice - only if financially necessary. So i'm not concerned about paying on rental income. We're just having to look hard at all the financial aspects of upcoming retirement, especially with DW retiring about 5 years earlier than she wished.  She just couldn't handle what the school systems have degraded to, and with the threat of SB5 in Ohio (eliminating bargaining for public employees) she contracted to an early buyout.  Even though SB5 eventually failed, she's still relieved to be out of the school system in June. Sorry - drifted off topic.

MrEd · Jan 23, 2012

There are also "remailing" companies in south Dakota. For a fee, they will keep all your mail for you. Then, when you stop long enough, call them and they will UPS all your mail to you. Some will open it, with your permission of course, and scan it, so it can be emailed to you.

MrEd · Jan 23, 2012

Also, per the posted comment about a concealed carry permit in SD, in most cases, you go to sheriffs office, fill out one page application. If nothing in your background check flags your application, your concealed carry permit is effective immediately. You get a copy of the application, stamped and signed by the sheriff that is valid until you get the wallet card mailed to you. They say it takes 2 weeks. I had mine in 4 days.

Seraphim · Jan 24, 2012

There are also "remailing" companies in south Dakota.

"Escapees" is a popular group out of Texas which has a large support group, as well.  Can't offer any comparison of the two, though. Just know they have a large following and offer some unique services. They also provide remailing.

Simran · Feb 27, 2012

I live in SD. If you ever decide to move here you will find a great variety of climates from -30 in winter in the NE to mild winters (relatively so) in the SE part of the state. Hey we have the beautiful Black Hills & lets not forget the surreal beauty of the Badlands. They are beautiful if you get out and experience being a part of  them. If you allow yourself to get intimate with the Badlands; they will make an indelible mark on your heart.

romani10 · Feb 28, 2012

I originally planned to get residency in SD, but got sidetracked to Florida. Several reasons, the main one being no state income tax, no requirement for vehicle inspection stickers, and the relatively low cost of transferring title. I will say that most states have upped the cost of title transfer from one state to another regarding vehicles...I think just the title transfer alone cost almost $300. Then add the cost of maintaining the mail service runs about $20 a month, with a $100 deposit to start the service. The total cost of establishing a residency in Florida was about $500. They have this little county tax thing going on where each county is slightly different according to their tax code. I don't know if SD is similar, but I would hope it would be cheaper....

karl · Feb 28, 2012

Simran- you are so correct about the Badlands- spent a  week in Wounded Knee, Interior, Martin, Pine Ridge,  area.....an area that changes a person......a couple days after in the Badlands was also life changing in a different and more positive way. I have never been more humbled and appreciative of my life by any other place.......I want to return

JohnDoeIII · Dec 7, 2012

good info to know.  Once I get on the road I was looking at setting up residency in Texas but I may change my mind and use South Dakota as my residence.

mockturtle · Dec 8, 2012

I've heard very good things about <a href="http://www.mydakotaaddress.com/" rel="nofollow">http://www.mydakotaaddress.com/</a>

josephusminimus · Dec 8, 2012

Good info.  SD looks to be worth looking into if I find there's something about Texas residence not to my advantage. And anyone who takes the handle, Phaedrus gets extra points from me anyway.

ontheroadagain · Dec 8, 2012

<h1 class="title">This might help with finding states that honor gun permits. Concealed Carry Permit Reciprocity Maps</h1><a href="http://www.usacarry.com/concealed_carry_permit_reciprocity_maps.html" rel="nofollow"> http://www.usacarry.com/concealed_carry_permit_reciprocity_maps.html</a>

virtuousman · Dec 8, 2012

Terri Lund @ MyDakotaAddress is a pleasure to work with and knows her stuff. You won't be disappointed.

South Dakota Residency (my experience)

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