Do you have to tell the state you sold it?
Yes — report the sale when you sell, and give the buyer a seller's permit
South Dakota requires a report of sale at the time of sale, naming the buyer and their address. Report it online in the Vehicle Registration & Plates portal (choose report of sale), or file form 1024 with your county treasurer. Do not give form 1024 to the buyer. Skipping the report is a Class 2 misdemeanor. You have 45 days to deliver the title to the buyer. You must also give the buyer a seller's permit. It is free. Print it from the online Vehicle Registration & Plates portal or get it at the county treasurer. It lets them drive the vehicle legally while waiting to apply for title, and it is valid for 45 days. Skipping it is also a Class 2 misdemeanor. A seller's permit cannot be issued for a boat or a snowmobile.
Source: SDCL §§ 32-5-2.10, 32-5-2.9, 32-3-7; South Dakota DOR, Motor Vehicle FAQ and Cars, Trucks & Vans; DOR form 1024