The allure of South Dakota extends beyond its stunning landscapes and historic landmarks. With no state income tax and low vehicle registration fees, the state has become a beacon for nomads, travelers, and digital nomads. It’s an advantageous destination where one can quickly establish residency. The process, facilitated by specialized businesses like the South Dakota Residency Center, involves spending a single night in the state and completing necessary paperwork.
Located in Spearfish, the South Dakota Residency Center is at the forefront of accommodating the rising trend of full-time travelers seeking a tax-friendly domicile. Under the leadership of Dane Goetz, who also presides over the Spearfish Black Hills KOA campground, the Center provides essential services, such as mail forwarding and assistance with obtaining a driver’s license. This appeals to the estimated 30,000-plus nomads who maintain a South Dakota residency while living a life on the move.
The simplicity of South Dakota’s residency requirements has ignited a debate within the state’s legislature. In 2023, South Dakota enacted new laws mandating a 30-day residency period for voter registration, addressing concerns about non-resident voting. Republican Sen. Randy Deibert stated during a Senate panel, “Citizens express concerns about people becoming residents overnight and voting absentee or another way the next day, then leaving.”
Dane Goetz
Despite these measures, the conundrum of determining true residency persists. Democratic Rep. Linda Duba expressed her concerns about non-physical residents participating in local elections. “I don’t want to deny somebody their right to vote, but to think they can vote in a school board election, legislative election, or county election when they’re not part of the community, I’m troubled by that,” she said.
Out-of-state interests are also scrutinizing South Dakota’s residency laws. In Connecticut, State Comptroller Sean Scanlon is investigating state employees who may be falsely claiming South Dakota residency to evade income taxes. “We’re aware of the situation and working with partners to resolve it,” stated the Department of Revenue Services.
The issue of residency verification remains a complex and politically charged subject. As Republican Sen. Jim Bolin described it, “the Gordian knot of politics” presents a challenge in defining what constitutes residency amid a mobile populace. The South Dakota legislative panel continues to tackle potential reforms to untangle these intricacies.
This ongoing debate touches upon various facets of life in South Dakota, highlighting not only the state’s appeal to nomads seeking practical advantages but also the concerns regarding fair electoral representation and ethical tax conduct. The resolution of such debates remains uncertain, with potential litigation on the horizon, as Republican Sen. David Wheeler suggested, “Litigation would likely force a change.”
In the meantime, the South Dakota Residency Center thrives, managed by a team equipped with diverse skills. Larry Hague, manager of the KOA, has a background in tourism and gaming, while Cynthia Hague’s experience spans the food industry and business startups. Kimberly J. Larson adds financial expertise with her role as an accountant. Collectively, they provide invaluable support for travelers seeking a South Dakota base.
As the story unfolds, South Dakota remains a state of opportunity and contention, striking a balance between welcoming freedoms and ensuring civic integrity—a narrative closely watched not only by residents but also by potential legislative allies and adversaries across the nation.
Victor Robledo
The discussion surrounding residency reflects broader national themes, challenging the conventional understanding of what it means to ‘belong’ in an era of increasing mobility and digital transformation. The future of South Dakota’s residency laws holds implications not only for its nomadic residents but also for the political and economic dynamics of the state, resonating beyond its borders.
Contact South Dakota Residency Center for more information on establishing residency.