For tax purposes, that is already illegal. I.e. most (all?) states determine your residency based on where you actually sleep a majority of the year. My guess is that FB will base it on where you claim residency for tax purposes, so if you lie about it you're committing tax fraud.

In a round about way, is this not already illegal? If I live in Ohio but I represent myself to my employer that I live in NYC, am I not committing state income tax fraud against Ohio? NYC would probably love this since people who don't live in NYC and don't use its services pay NYC taxes, but Ohio would hate this because the person lives in Ohio and pays no state taxes.

EDITED: Also, you could not get a driver's license in Ohio since you have to live there to get one. Forget about registering cars, owning property and paying for anything with a credit card in your own name.

It probably is illegal due to issues with taxes. If I put my address in Seattle,wa but i am residing in Astoria, Oregon. I owe Oregon income tax

It's already illegal to lie in a contract. It's called fraud.

One hopes lawmakers would let it continue for irony's sake