Joshua Haiar, South Dakota Searchlight
Tens of thousands of out-of-staters title their vehicles in South Dakota, because it’s cheaper and easier.
“This has resulted in South Dakota becoming a haven for non-residents that choose to avoid higher taxes and fees, vehicle emissions inspections, or to get a title that their home state would not be able to issue to that particular individual,” said Rep. Roger Chase, R-Huron.
He is the prime House sponsor of a bill aiming to charge non-residents an extra $100 fee. It earned its final legislative approval Thursday when the House of Representatives passed it 59-10 and sent it to the governor for her consideration.
Non-residents currently pay the same amount as residents, said Chase.
Another reason people choose to title their vehicles in South Dakota is the lack of safety inspections, according to Rosa Yaeger, director of the South Dakota Motor Vehicle Division. She testified when the bill went before the Senate Transportation Committee and said non-residents are creating burdensome work for staff already busy helping residents.
Half of the revenue from the extra $100 fee for non-residents would go to the county in which the vehicle is registered, and the other half would go to the state. Chase said the additional revenue could help departments hire more staff.
To avoid the $100 charge, people would need to have a South Dakota identification card or a physical address in the state.
As of 2018, more than 58,000 vehicles with out-of-state addresses were registered in South Dakota.