Full-Time RVing~How to Establish a New State Residency

Choosing a state of residency is one of the important and most pressing decisions that you, as a prospective full-time RVer, will face. You have taken some big steps on the road to full-timing. Your house is on the market and the motorhome is in the driveway. You are whittling down your household goods and organizing things you will keep. Now, for the big decision: If you no longer live in a state, where will you have your legal residence?

You can remain a resident of your current state if you have relatives or friends who will let you use their address, or if you set up a mailbox in someplace like Mailboxes, Etc. Your other option is to choose another state that is friendly to full-time RVers. If you do this, you must meet residency requirements for that state.

People who have lived in a state for many years, perhaps even their whole lives, may identify with that state and wonder if there is a good reason to become a resident of a different state when they go on the road full-time. They soon discover that there are good financial reasons for changing residency. All states are not equal when it comes to the cost of registering and insuring your vehicle. Also, you can save thousands of dollars if you register a newly purchased vehicle in a state that has low or no sales tax.These costs are a big consideration when purchasing and registering a high dollar vehicle or an RV.

While the requirements to become a state resident sound simple, it usually means that you have to spend some time in the state to get things organized.

Legal Address. A legal address for residency must be a street address. Post Office boxes are not considered residential addresses, but there are mailing forwarding services in many states which will give you the required street address. This is usually fairly easy, and you do not need to set this up in person.

Driver’s License. You must get a driver’s license from your state of residence. Some states will require you to take a driver’s test, others won’t. Either way, you need to do this in person as you will have to get a photograph taken and show proof of your identification.

Vehicle registration and insurance. Vehicles must be reistered in your state of residency. What this means is that you must have a driver's license in the same state as you register your vehicles.  You must also insure your vehicles in that state.  This can usually be done by mail, but there are usually several forms to fill out for the Department of Motor Vehicles.  We found that our mail service, Alternative Resources in Sioux Falls, South Dakota, had a staff member specializing in helping people through the process. There was a fee associated with this service, but it was well worth it as she walked us through each step and personally visited the DMV to take care of the paperwork.

Voting: Voter registration can sometimes be done at the same times driver’s licences are purchases. Voting in national elections can be done by absentee ballot. States have different requirements for registering for local elections.

Health Insurance: This should be purchased in your state of residency. If you are on Medicare, you should notify them of your new address after you establish residency in your new state. If you are on a health insurance plan with your employer or previous employer (retirees), you should check with them about your change of state residency to make sure you are still covered.

While different peple have different reasons for becoming residents of various states, there are 3 states that are very friendly towards full-time RVers and the most popular choices among full-time RVers. They have no state income tax and they make it easy to establish residency. The states are:

Florida as legal residence for full time RVers because:

• Has no tax on income or investment income
• Has many retirees and many choices of health insurance.
• Has mid range vehicle insurance
• Is convenient to RVers who plan to spend a lot of time on the east coast.
• There are some mail forwarding companies that will provide clients with a street address.

Texas as legal residence for full time RVers:

• Has no state income tax.
• Vehicle registration fees are low, but they do have an annual vehicle inspection. Texas does allow full-timers to postpone vehicle inspection until the next time they are back in the state after the inspection expires.
• Driver’s licenses can be renewed by mail.
• It’s easy to register to vote by mail.

South Dakota as legal residence for full time RVers:

• Has no state income tax.
• When purchasing a vehicle, there is only a 3% excise tax, but no other sales tax to pay.
• Vehicle registration fees are reasonable.
• There is no state inspection required. This means that you do not have to go back each year to have your vehicles inspected.
• Vehicle insurance is much lower than many states. For example, insurance in SD is less than 50% of NC vehicle insurance.
• Driver’s licenses cost about $20 in 2011, but you must appear in person to renew every 5 years.

When choosing a new state for legal residence, you may also want to think about what your full-time life style will be.

Florida is a good choice if you will spend a lot of time on the east coast because Florida residents get a heft discount on Florida state parks, and it's a great place to spend the winters.

Texas is a good choice If you intend to winter in the Rio Grande Valley or spend a lot of time in the Southwest. Many members of The Escapees Club are residents of Texas because The Escapees Club has a very good mail service based in Livingston, Texas and a very helpful staff.

South Dakota has the most financial benefits, and since you are only required to return to renew driver's licenses every five years, it might make the most sense for you. You do have to renew your driver's license in person, so you'll have to travel to South Dakota at least every five years if you choose it as your legal residence. One of the most popular mail services is located in Sioux Falls, SD. Alternative Resources staff will also assist you when registering a vehicle or purchasing insurance long distance.

As you are planning to change your lifestyle from living in a "sticks and bricks" to living a life on wheels, you may be getting anxious about having all of your business affairs in order. Changing state residency can't be done until you actually sell your home and no longer own property in your home state, but there are some things you can do to get ready.

Do check into mail forwarding services in the state where you will become a resident and set up your new mailing address. When your moving date is a month to six weeks away, start changing your mailing address for memberships, subscriptions, financial institutions, etc. You can call your mail service at any time to have them send your mail to wherever is convenient for you.

You do have some time before you need to change over your drivers licence, registrations and insurance, but that all needs to be changed at the same time. While you don't need to feel pressured, you should make a plan to visit your new "home" state within 2 or 3 months of going on the road. Once you are a legal resident of your new state, be sure to change your address with the Social Security Administration, Medicare and your health insurance companies.Don't forget your retirement plans and any life insurance companies, too.

On the Road

When it's time to pull out of your driveway for the last time, don't look back! We play Willie Nelson's song, "On the Road Again" each time we are off on a new adventure. You have places to go and things to see, so look ahead and enjoy the journey!

Happy Trails!

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This article Copyright ©2011 by Stephanie Henkel