Short-term Rental Information


This page gives an overview of the various licensing, registration, and tax requirements for operating a short-term rental in Folly Beach.


For questions about rental requirements please email rentals@follybeach.gov.

 


Rules for Renting Your Home at Folly


For questions about rental requirements please email rentals@follybeach.gov.

 

Please follow the checklist below to make sure you’re in compliance with city, county, and state regulations and taxes for renting your home.

1) A Business License is required for any home rental, both short-term and long-term. Please remember that short-term rentals must have the business license number posted in the unit and in all advertisements for the unit. New licenses may be applied for by emailing a completed Business License Application to  rentals@follybeach.gov . To apply in person for a new license, visit the front desk of City Hall between 1pm and 5pm.

The License Year Runs from May 01 – April 30

2) A Rental Registration is required for short-term rentals in addition to the business license. You must have a rental registration number if you rent your house at any time on a short-term basis (less than 30 days). Please remember that short-term rentals must have the registration number posted in the unit and in all advertisements for the unit.

You can request a copy of the business license and registration certificate by emailing the owner’s name and the street address of the rental property to rentals@follybeach.gov .

3)  Beach Rules must be posted in all short-term rentals and provided to all renters.

4) Maximum Number of Occupancy must be posted in all short term rentals and provided to all renters.

5) Sales and Accommodations Taxes

The rules for when you are required to collect sales and accommodation taxes are complicated and depend on whether your house is a primary (4%) or secondary (6%) residence and how many days of the year it is rented. There are several types of taxes that must be collected, and some are paid to the State of South Carolina and some to Charleston County. Please contact the state Department of Revenue at (844) 898-8542 Option 6 (toll free) or (803) 898-5000 (local) with specific questions about state taxes you owe. Please contact Britt Miller at Charleston County with questions about County taxes, bmiller@charlestoncounty.org, or (843) 202-6095.

Below are some basic guidelines for taxes, but we encourage you to contact the state or Charleston County about your specific property.

If your home is your primary residence and it is taxed at a 4% property tax rate:

  • You may rent your primary residence and continue to live in it during rentals (i.e.: having a roommate or boarder) without paying sales or accommodation taxes.
  • You may rent your home without living in it for up to 15 days per year without charging accommodation tax or collecting state taxes. However, you must obtain a business license and complete a rental registration form with the City of Folly Beach.
  • You may rent your home without living in it for up to 72 days per year and keep your 4% exemption, but you must collect all Sales and Accommodations Taxes, as outlined below for second residences. You must also obtain a business license and rental registration license. Failure to collect and pay the appropriate taxes will result in three years of retroactive penalties during the annual audit.

If your home is a second residence or taxed at a 6% property tax rate:

In addition to the business license, rental registration, and beach rules above, you must collect the following taxes. Even if you hire a property manager, you as the property owner are ultimately responsible for collecting these taxes from the renters and submitting them to the appropriate state and local agencies. You may itemize the taxes on rental bills as shown below. Failure to collect and pay the appropriate taxes will result in three years of retroactive penalties during the annual audit.

  • State Sales Tax 5.0% Remitted to the State
  • State Local Options Sales Tax 1.0% Remitted to the State
  • State Accommodations Tax 2.0% Remitted to State
  • County Transportation Tax 1.0% Remitted to State
  • School District/ Education Tax 1.0% Remitted to State
  • County Accommodations Tax 2.0% Remitted to County
  • Folly Beach Accommodations Tax 2.0% Remitted to County
  • Total Taxes on Accommodations 14.0% 

 

Questions about a business license?

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For all business license related questions please email Stacee Ritchie at sritchie@follybeach.gov or call 843-588-7017

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