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Author Topic: South Dakota Domicile Question  (Read 2345 times)

UP Travelers

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South Dakota Domicile Question
« on: November 16, 2014, 09:03:31 AM »
We plan to move out of our appartment the end of this next April and into our, soon to be purchased, MH. Through next summer we will split our time between the MH and our sailboat and hit the road next fall when the sailboat comes out of the water and into winter storage. We keep our sailboat about 2 hrs and in a different state from where we now live.
My question is can we set up residency in South Dakota before we move out of our appartment? I had figured we would consider becoming SD residents at a later time, but saving almost half of the sales tax on the MH purchase is very appealing. I don't want to do anything illegal or even unethical.
On the ethical side we aren't from this state, we've only lived here 2 yrs and don't plan on living in this state when we are no longer full-timers.  We don't plan on using the MH is this state any more that any other. Probably less.
As to the legal consideration I can't find information when I do general searches for South Dakota. What I find mostly is requirements for paying in-state college tuition. I have called one of the mailing services in SD and they talk like it's ok. But they want our business.
So I am hoping that some reading this have knowledge on this question.

Thanks, Jim
Jim
2008 Tiffin Allegro 32BA
2015 Kia Soul
Blue Ox Alpha Tow Bar
Blue Ox Patriot Brake System
EEZ RV TPMS
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Chuck and Lori

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Re: South Dakota Domicile Question
« Reply #1 on: November 16, 2014, 10:23:01 AM »
Short answer, YES.  We became SD residents by mail and drove through the state with our new MH to get our SD driver's license and get the MH registered and licensed.  Three months later we left Washington State to begin our full time travels.

Not sure which mail forwarding service you contacted but the owner of Americas Mailbox is a full timer and they have treated us very well.  If you contact them, I'm sure they will give you the correct procedure to use and stay legal. 

Thanks   Chuck

Gary RV_Wizard

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Re: South Dakota Domicile Question
« Reply #2 on: November 16, 2014, 10:28:34 AM »
Yes you can, but it's best if you never bring the RV into the state while you still physically reside there, since that potentially raises tax questions you do not want to get mired in. Establishing domicile in another state doesn't necessarily make your purchase non-taxable if you are living elsewhere, even temporarily. For example, you probably have other vehicle(s) already titled & registered in your current state, which makes a prima facie case that your are still a resident there for tax purposes. Most states consider you a resident for tax purposes if you stay there more than about 30 days, work there, or maintain legal presence there (e.g. bank accounts, driver license, kids in school, etc.).
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

John From Detroit

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Re: South Dakota Domicile Question
« Reply #3 on: November 16, 2014, 03:42:39 PM »
I will not address your questions but .... I will caution.

I have recently seen some disturbing articles on things like health care insurance options for seniors if you "Move" to SD.

Being a senior, though not yet on Medicare (I have a bit of time yet before that) the lack of options for Medicare supplemental plans concerns me.

This is one of the things many do not check out yet.. Also, I do not know how well the article writer researched.. I tend to suspect there are more options than he thinks.. But I'm running out of states to register in.. I just may stay in MI.

(Four states, FL, TX, NV and SD, allow full timing,, SD is making it harder and epically for me since my Birthday is mid-winter,  NV, well pick your county cause some of 'em will knock your budget off tax wise,  TX has special license requirements, and FL.. Well, I have something against both TX and FL, but that's political.
Nothing adds excitement like something that is none of your business
My Home is where I park it.

ArdraF

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Re: South Dakota Domicile Question
« Reply #4 on: November 16, 2014, 04:11:11 PM »
I would also caution you to be very careful choosing a domicile state.  John mentioned Medicare.  I would avoid signing up for an HMO in which you are tied to a specific service area except in emergencies.  We chose the AARP/United Healthcare secondary insurance because it is good nationwide.  We can go to any doctor or any hospital in any state.  Even though we're not fulltimers, we travel all over the country and need to be covered anywhere without worrying about being treated "in plan."  You will have to get your secondary health insurance in the state you choose as your domicile.  Many people choose to become residents of Livingston, Texas which is the Escapees headquarters.  With an Escapees address there, you can register vehicles, get vehicle insurance, vote, get the appropriate health insurance, and all the other things you will need as a fulltimer, including a very good mail forwarding service.  Escapees is an organization started by and for fulltimers.

Because computers have improved so much the states are now able to check across state lines to cooperate in finding out more information about us.  If you have vehicles registered in a couple of states, a driver's license in another state, and conduct most of your business in still another state, it's like a red flag to a bull.  You want to be as consistent as possible.  For example, when we left California I notified the Elections people that we were no longer California residents and we immediately registered to vote in our new home state.  We also wrote formal letters to our doctors telling them that we were moving out of the state and to thank them for their care.  In other words, we made as much of a "paper trail" as possible so that we could do things that might affect things like tax-deferred retirement accounts that are subject to state income tax in most states.  We also were careful to let a full tax year elapse before making some changes that involved taxes.  By the way, it sounds good to avoid, for example, sales tax on a motorhome, but the states have to get their revenues from somewhere and that somewhere else might be income tax, tax on investments, real property taxes, or other ways that might offset the original sales tax savings.  That's another reason you need to choose your domicile state carefully.

ArdraF
ArdraF
:D :D

UP Travelers

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Re: South Dakota Domicile Question
« Reply #5 on: December 01, 2014, 09:56:17 AM »
"When in doubt, don't". So we didn't. We are staying put, for now. At least as far as our declared domicile is concerned. Therefore we will pay the higher sales tax on our just purchased MH.  We needed to make a decision rather quickly.  And as it turned out it was the health insurance consideration that discouraged us. We now pay very little per month for our health ins. Comparitivly.  By the reading that I had done here and a call to one of the recommended (here) multi-state insurance agengies we found our way to this website.  http://rverhealthinsurance.com         
This truely is a great Forum. A lot of contributers here willing share their vast knowledge and experience. It's alway great to learn other than by making costly mistakes.  Someday I hope to give back more than I take. But for the time being I here to learn.
Thank you. Thank you. Thank you.

Jim

Jim
2008 Tiffin Allegro 32BA
2015 Kia Soul
Blue Ox Alpha Tow Bar
Blue Ox Patriot Brake System
EEZ RV TPMS
Garmin RV 760LMT GPS

Jeff

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Re: South Dakota Domicile Question
« Reply #6 on: December 01, 2014, 12:26:53 PM »
I will not address your questions but .... I will caution.

I have recently seen some disturbing articles on things like health care insurance options for seniors if you "Move" to SD.

Being a senior, though not yet on Medicare (I have a bit of time yet before that) the lack of options for Medicare supplemental plans concerns me.

This is one of the things many do not check out yet.. Also, I do not know how well the article writer researched.. I tend to suspect there are more options than he thinks.. But I'm running out of states to register in.. I just may stay in MI.

(Four states, FL, TX, NV and SD, allow full timing,, SD is making it harder and epically for me since my Birthday is mid-winter,  NV, well pick your county cause some of 'em will knock your budget off tax wise,  TX has special license requirements, and FL.. Well, I have something against both TX and FL, but that's political.


John


Would you mind explaining your statements like " I have recently seen some disturbing articles On things like health care options for seniors if you 'Move' to SD" and "SD is making it harder...." ?

After being domiciled in SD for 9 years we have noticed no changes other than meeting the Federal ID requirements for drivers licenses. Our Medicare Supplement from AARP/Untied Healthcare was about $25.00 per month less than if we were AZ residents the last time I checked.
« Last Edit: December 01, 2014, 12:31:00 PM by Jeff »

John From Detroit

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Re: South Dakota Domicile Question
« Reply #7 on: December 01, 2014, 05:09:57 PM »
It appears that SD took the Publican road with Obamacare.. And your choice of supplemental insurers is becomming more and more limited,  Now AARP finds a company that will write a policy for you  (AARP does not, far as I know actually insure you but they will find a company that will, kind of like an independent agent) but many companies it appears are pulling out of SD.

I am convered by the state of Michigan, and when I go on Medicare this policy will convert to a "Supplemental" but alas, very few companies offer retirement packages as good as the government.
Nothing adds excitement like something that is none of your business
My Home is where I park it.

 

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