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We’re trying to decide on the most cost effective Home Base.Our pension is significant enough so that avoiding State income tax is primary.That narrows our search to Nevada, Texas, South Dakota, Wyoming, Florida and New Hampshire. Do you know which of these states charge personal property tax on the value of the RV?Wyoming looks good with no income tax and only 1% in sales tax, but maybe they have high RV license and tax fees? We do not own real estate, and medical insurance is not a factor. We have not yet purchased our RV or toad. So we have a lot of flexibility in deciding on our domicile. We want to avoid State income tax, reduce or eliminate Sales tax on the purchase of the RV/toad (probably about $180,000), reduce or eliminate Personal Property Tax on the RV, and pick a spot with low insurance rates. Not asking for much, am I!!!? I'm creating a spreadsheet to evaluate these states. Any help in filling in the blanks is appreciated. Thanks! Mike and Linda
It may be even more complex then that you mention Pension but don't mention investment income. In which case PA and Michigan are also on the table as neither state taxes pension incomes.
So if you have relatives in a state that doesn't tax pensions you may have an alternative.
Being employed my needs are different South Dakota works well for me but may not for you.
Thanks, Mallo. All our investments are tax deferred so we're not worried about that. Does South Dakota assess personal property tax on the value of your RV? Or do you just have to pay the annual license fee?
I believe that South Dakota only has a 3% sales tax on the RV purchase and if you purchased and paid tax in another state over 3% (and can prove it) they don't even charge that.
As Florida Residents, we have no state income tax. Sales tax we do have. There is no heavy penalty on an annual tax on the RV. However if you register a vehicle in FL that you already own, there is a one time fee at registration. An automobile is around $150 - $200. Not sure about an RV. This information is available on FL's state website.
The cost of insurance depends upon the close proximity to coastal waters. We are satisfied in having our registration in FL.
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Ethel & Charles Henry, Itasca Horizon DP/Honda Element Toad Traveling with our furry-snouted, four-legged children.
"Each of us must take part in making this a better world for all people."
We started fulltiming (from New Jersey) in February and really thought Texas was the way to go. I wish I had investigated further. We are now in process of changing to SD.
Our fifthwheel insurance was $1,315 a year in Texas - in SD is $555. Our truck insurance was over $1,300 a year in Texas and went down to $474 a year in SD. SAME COVERAGE!
My Medicare supplement from Texas dropped from $136 a month to $95.
SD does not have a personal property tax. NEW vehicles only have a 3% excise tax. ALso to consider SD requires NO vehicle inspections so you do not have to return there every year. Also, drivers license good for 5 years with a one time renewal without returning to SD. You do have to go to SD to get initial drivers license. Only need to stay one night. All else can be done through mail, internet.
Oh also, it cost us an initial $534 to register fiver and truck in Texas. SD was $234 and $40 of that was the cost of the mail forwarding service doing it for us.
By all means, investigate, investigate, investigate.
SD does not have state income tax. Neither does Texas. Since we really have very little income BIG DEAL!
We selected South Dakota over Texas or Florida, for us it worked best. We full time in a Fifth Wheel. As already stated SD charges 3% tax on purchases of a new RV or a New Vehicle. Plates for both the Fifth Wheel & Truck was $185.00 this year. They did go up a little from last year. RV was more than the truck.
Once you decide on your home state... I would suggest you get the mail forwarding set some time before you go there to apply for your driver license or vehicle plates. This will give you a chance to get all your mail going through the mail forwarding company. This will be important for the driver license process.
The Federal Government now requires proof of residency. This is what was provided by our mail forwarding company.
Items needed was :
Proof of Identity, Date of Birth & Lawful Status. Choices were - CERTIFIED US Birth Certificate or US Passport or Certificate of Citizenship (there was also a list of items one might need if they were not a US Resident).
If your name is different than your name on your Identity Document. You will need to bring additional proof of your legal name. Acceptable documents for proof of legal name change are a certified marriage certificate, a certified adoption document, or a certified court order authorizing a name change. (such as a divorce decree)
Document to prove your Social Security Number. Choices were - Social Security Card (Not the STUB card and document that it came attached too) W-2 Form, SSA 1099 Form, Non-SSA 1099 Form, Pay Stub (Must include name & Social Security Number)
Documents to prove your principal address. Choices were - Utility bill, Credit Card Statement, Pay Stub or earnings statement, Rent Receipt, Phone Bill, Transcript or report card from Accredited School, Bank Statement, Mortgage Document, Tax Document, Homeowners /renter's insurance document.
Receipt from a campgrounds or a motel or hotel in South Dakota. (This we learned at the last minute - We stayed 2 days is all)
We no longer had our original Social Security Cards... after all these years they were gone. We did have the original card that came on as well as the stub that was attached to the SS Card... it looked nearly identical to the card in fact... but it would not do ! Since we arrived in SD with out our Fifth Wheel. We did not have any of our Tax documents with us... We got lucky by being able to call one of the providers of a Form 1099... they faxed to the Courthouse so we didn't waste the trip from Texas.
South Dakota allows a driver license to be renewed up to 180 days before your birthday but not more than 30 days after your birth date. Beyond 30 days will require you to do a driving test once again.
Great information! South Dakota is looking better and better. When we retired 5 years ago, we changed our domicile from California to Nevada due to no State income tax. With all of our additional considerations when we begin RV'ing, we'll probably change again. Thanks for the reminder about the order of the procedure. Mail forwarding first step! --Mike
