If you get out and about much, you may have seen a few more South Dakota license plates than you thought you might for a state with only 800,000 residents. So the question you are probably asking yourself is, "does everyone in South Dakota own R.V.s?" Maybe. But probably not.
What is more likely is that you are witnessing the migration of owners moving away from registering their cars, trucks, and R.V.s in their pricey and restrictive home states. Instead, they stay put in California, New York, or maybe Washington but are titling and registering their vehicles in the Mount Rushmore State. And you know what? It might be an excellent option for you, too.
Tell Me About South Dakota
South Dakota is the fifth least-populated state in the United States. It has an overall population of about 885,000, making it more prominent in population than only North Dakota (762,000), Alaska (732,000), Vermont (624,000), and Wyoming (579,000).
South Dakota is a state that relies heavily on blue-collar work in its key industries.
Manufacturing accounts for 10% of all jobs in the state, with major manufacturers including 3M, Daktronics, The Terex Corporation, and Raven Industries.
South Dakota is a major livestock producer, with over four million cows and calves and nearly two million beef cows in 2018. It is also a leading producer of dairy, pork, and poultry operations and is in the top ten percent of bison, sheep & lamb production.
But it isn’t just the blue-collar that employs South Dakotans.
There are thirty-two cybersecurity companies in South Dakota employing nearly seven hundred employees. The average salary? Almost $96,000. That goes a lot farther in South Dakota than anywhere on the coasts.
Biosciences are another white-collar field growing in South Dakota, with nineteen percent of all students in South Dakota pursuing degrees in the field.
Are People Moving to South Dakota?
So, is South Dakota growing, or do you see South Dakota license plates for some other reason? Well, the answer is both.
South Dakota is growing. According to the Census Bureau, South Dakota grew by 72,487 between 2010-2020, which equals 8.9 percent growth. How does this fare with other comparable states?
In the same period, Kansas only grew by three percent.
Their southern neighbor, Nebraska, grew comparably at 7.4 percent.
Wyoming only grew by a paltry 2.3 percent, a numeric change of only 13,225 people.
North Dakota edged out the rest of the central states with 15.8 percent growth, or 106,503 people.
The frigid cold is not a determining factor in growth; North Dakota is the least scenic and coldest of the above. But South Dakota has a lot going for it: it is a relatively inexpensive place to live, has a positive job outlook, and quite frankly, has a nice view.
So the short answer is: yes, people are moving there. But people also buy out of state registration and South Dakota license plates for good reasons.
Learn how you can get a South Dakota registration without doing the work yourself
Who Is Registering Their Cars In South Dakota?
We know that South Dakota is growing. More people = more cars = more license plates. But this does not completely account for the influx of South Dakota license plates we are seeing. And I can vouch for this: in a recent trip to the Texas Gulf Coast, it appeared that most of South Dakota were on the beach with me in their R.V.s.
But who is registering their vehicles in South Dakota if they aren’t South Dakotans? We have a few ideas:
California
We come down hard on California, but seriously, they are always looking up our services! And there are good reasons for it: California has a very unfriendly vehicle sales tax structure, to the tune of 7.5 percent at a minimum.
On top of that, smog checks. Not a huge deal if you drive a new vehicle, and although R.V.s are often older, they tend to have low miles. This universal truth does not matter, and you could be up to your eyeballs in emissions repairs if (, or when) your aging motorhome or tow rig fails an emissions test in California.
New York
Another usual suspect, New York, has very similar issues with California. Also, unironically, New York is a largely rural state (much like California), but the regulatory framework is focused on people living in a couple of densely populated areas.
So, as is the case with most states driven by large cities, regulations go up, and so do the taxes and registration costs. So, where does that leave you in upstate New York, a rural farm area that has no more in common with N.Y.C. than rural Nebraska?
Illinois
We don't give Illinois nearly enough credit for our success, but thank you! People there love to register out of state, and it is no shock why: Chicago runs a state that is mostly farmland. Taxes are high, regulation is high, yet most of the state is rural. So we know you're out there, Illini!
There are many other states where residents have found the registration process distasteful, but these are the heavy hitters. Our out-of-state registration service offers many people a superior product than their home states' registration. Recall that the states with the largest populations are the worst on taxes, smog checks, and inspection.
What is the Advantage of Registering in South Dakota?
If we are going to make the bold claim that our service through South Dakota is a better option than your state, we had better bring the receipts.
Tax Rates
South Dakota's tax rates are fair compared to all big states (Texas and Florida included). The tax rate in South Dakota is a modest four percent, and it is a flat rate; you will not get charged another two or three percent on top of the local county or city. California, for example, has a base tax rate of 7.5 percent, but some cities tack on another 2.5 percent. The highest places we found were over ten percent (Los Angeles County).
We have gone over the savings on a state-by-state basis, and it is just staggering. For example, if you live in L.A. and are in the market to purchase a luxury motorhome, you can expect to pay around ten percent in taxes. However, motorhomes will routinely run in the $400,000 price range, so you can expect to pay $40,000 in taxes. Or you can register in South Dakota and reduce the tax burden by up to 60 percent, depending on the locale.
No Inspections
South Dakota is a no-inspection state. What does this mean for you?
There are no mandatory safety inspections required in South Dakota. Generally speaking, this isn't much of an issue if you have a factory-built automobile. But, more than anything, it is a waste of time and money. Every car made or legally imported to the U.S. has had all the necessary lights and safety belts in the past five decades.
Besides, if your car is missing half of its lights and is dragging a bumper, you will get pulled over. So it's not like the safety inspections are catching anything that won't earn a ticket on the road.
Once your vehicle is registered in South Dakota, you will not need a safety inspection sticker of any kind to go with the South Dakota license plate.
No Emissions Checks
In California, you know all about the smog check program. This is a huge drag, particularly when your car or truck gets older than eight years.
You can expect that at eight years, which is around 96,000 miles, your vehicle is getting old enough and worn enough to fail the inspection. It is no coincidence that the grace period in California ends at eight years, but most vehicles are older than that.
Get Rid of Those Fees!
As we said, we have interest in our products from all over the nation, but most of it comes from a handful of big states. We see you. And we know why you are looking at a better option: you are tired of looking at other states with reasonable taxes, fee structures, and no inspections. We are happy to oblige you.
Who’s got fees? We’re looking at you, New York. $25 late fee? Check. $50 title certificate fee? Check. And did you do what you thought was the responsible thing and buy an electric vehicle? Good for you, now pay your 2-year fee ($32.50). Don't forget about some of the nation's highest sales tax rates for autos.
California is the king of fees, undisputed. Here’s the rundown:
Registration fee: $60.
California Highway Patrol (C.H.P.) fee: $28.
Transportation Improvement Fee (TIF)—Based on your vehicle's value:
$0 to $4,999: $27.
$5,000 to $24,999: $55.
$25,000 to $34,999: $110.
$35,000 to $59,999: $165.
$60,000 and up: $192.
These are just for starters, too. If you are late to register it? Oh boy. Here they are:
California Vehicle Registration Penalties:
Less than one year: $30.
1 to 2 years: $50.
More than two years: $100.
But that’s not all:
California Highway Patrol Fee Penalties for an original registration:
Less than one year: $30.
1 to 2 years: $50.
More than two years: $100.
With our out-of-state registration package, you will pay no hidden fees. There will be no safety inspections: no smog checks, or emissions requirements of any kind. You fill out the paperwork that we send you, including proof of ownership, send it back with payment, and we do the rest.
All you have to do is wait for the package to arrive from the South Dakota D.M.V. with your South Dakota license plate and registration.
How Does It Work?
South Dakota is not all that concerned with your state of residence. They are not as forward as Vermont, whose D.M.V. says it doesn't matter if you are a resident or not. But, they also do not require proof of residence like Montana does.
We do all legwork to provide you with the best and fastest service possible. We know that your goal is getting on the road, and our goal is to get you there with as little hassle as possible.
We can register any vehicle regardless of the state of origin. All we need from you is a valid proof of ownership to get the ball rolling, such as:
Title or transferable registration.
Salvage title (yes, we can work with a salvage title).
Manufacturer’s Certificate of Origin (we need a valid bill of sale with every MCO).
Financing (unless it is through Synchrony Bank).
Once you select the program and check out, you will get some paperwork. Fill out the information and proof of ownership, then send it all to us, and we’ll take it from there.
If you have any questions about the status of your vehicle or its history, you should request our VIN check. Again, it is cheap insurance against problems cropping up during the registration process when you could deal with them beforehand.
If you want to cut taxes even further than South Dakota, we suggest you check out our Montana LLC program. With the Montana L.L.C. program, sales taxes are zero (although there is an annual fee of $825 for light luxury vehicles over $150,000 and $800 for R.V.s valued over $300,000).
Whichever program you choose, know that you have some of the best support in the industry at your disposal to get your vehicle legally in the green again. So get registered out of state today with the help of Dirt Legal
If you have a financed vehicle and want to register it out of state, you have two main options: South Dakota or a Montana LLC (with your bank's permission). South Dakota offers a straightforward registration with no residency requirement and a low sales tax, making it accessible for financed vehicles. Alternatively, a Montana LLC can save you on sales tax entirely, but typically requires you to own the vehicle outright, or get explicit permission from your lender.