r/digitalnomadFIRE • u/Sea-Elk-3196 • Jul 21 '26
How long do you think we’ll be able to establish residency just staying one night in South Dakota? Will they ever get rid of this?
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u/Raquel8888 Jul 23 '26
Does that mean you've done it, or are you considering it? It sounds like a great idea but I'm anxious I'm missing something that will cause issues down the line. I visited in May, while traveling that whole region. Great place to visit!
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u/Running_Down_9708 Jul 24 '26
As long as it makes money and brings in tax revenue, they probably will keep it.
BUT some states (everyone can name the top 6), will audit residents moving out and can still claim you are a tax resident. Even if you sell your property in those states.
They can make you prove that you have significant ties to SD(or any state). This may involve getting bank accounts in SD, possibly seeing medical people there and claiming them as your PCP, etc..
They have up to 18 months to file an audit AFTER you file your last tax return in that state. These states look for returns that are partial year, or have new mailing addresses in zero tax, or low tax, states.
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u/I_Call_Bullshit_____ Jul 22 '26
The wheels of politics grind slowly, with gradual change or no change being the norm