Short-term Rental Information
This page gives an overview of the licensing, registration, and tax requirements for obtaining a rental license for your home in Folly Beach are summarized below.
Answers to rental license questions can be found HERE. If you need more information about rental requirements, please email email@example.com.
2023 Business License Renewal Information: Click Here
2023 Sample Renewal Packet for Property Managers: Click Here
IMPORTANT DATES TO REMEMBER: MARCH 09, 2023 – BUSINESS LICENSE RENEWAL PORTAL OPENS – (MUST REPORT GROSS REVENUE FOR THE CALENDAR YEAR 2022 (1/1-12/31) OR FOR THE COMPANY’S PREVIOUS FISCAL YEAR IF DIFFERENT DATES APPLY.
IF YOU DO NOT RECEIVE YOUR COURTESY RENEWAL FORM BY MAIL FROM CHARLESTON COUNTY THE CITY WILL BE ABLE TO ACCESS YOUR ACCOUNT AND EMAIL THE FORM UPON REQUEST AFTER MARCH 09, 2023
APRIL 30, 2023 – DEADLINE FOR ALL BUSINESS LICENSE RENEWALS
MAY 30, 2023 – DEADLINE FOR THE NEW RENTAL REGISTRATION PERMIT – FEE CHARGED (MUST REPORT GROSS REVENUE FOR THE CALENDAR YEAR 2022 (1/1-12/31) OR FOR THE COMPANY’S PREVIOUS FISCAL YEAR IF DIFFERENT DATES APPLY.)
RULES FOR RENTING YOUR HOME ON FOLLY.
- A Business License is required for both short-term and long-term home rentals. The license year begins on May 1 and ends on April 30.
Short-term rentals are for periods of 29 days or less. Short-term rental licenses are issued as either Owner Occupied Short Term Rentals (properties with a 4% property tax rate) or Investment Short Term Rentals (properties with a 6% property tax rate). There is no cap on the number of Owner Occupied Short Term Rental licenses. The number of Investment Short Term Rental licenses is capped at 800. The City is not accepting applications for Investment Short Term Rental licenses at this time (the cap has been exceeded). Information on joining the waitlist will be published soon.
Long-term rentals are for periods of 30 days or more. There is no limit on the number of long-term licenses issued.
New licenses for Owner Occupied Short Term Rentals or long-term rentals may be applied for by emailing a completed Business License Application to firstname.lastname@example.org. Once completed, you can drop your application by City Hall between 1:00 pm – 5:00 pm M – F. To apply in person, please email our Business License Official, Stacee Ritchie email@example.com
License renewals for all rental licenses begin March 1.
A copy of your business license must be posted in any rental unit. The business license number must also be posted in all advertisements for short-term rentals. You can request a copy of the business license by emailing the owner’s name and the street address of the rental property to firstname.lastname@example.org .
- A Rental Registration is required for all short-term rentals in addition to the business license. This applies to Owner Occupied and Investment Short Term Rentals.
Short-term rentals must have the registration number posted in the unit and in all advertisements for the unit.
New registrations can be applied for by emailing a completed 2023 Rental Registration Application to email@example.com .
Registration renewals begin on March 1.
You can request a copy of the registration certificate by emailing the owner’s name and the street address of the rental property to firstname.lastname@example.org .
- A copy of the City’s Beach Rules must be posted in all short-term rentals and provided to all renters as part of the rental agreement.
- The maximum overnight occupancy, determined by the rental registration, must be posted in all short-term rentals and provided to all renters as part of the rental agreement.
- All rental owners must report Sales and Accommodations Taxes to the State and County.
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, at email@example.com , 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