PLEASE REVIEW THIS PAGE CAREFULLY AS THERE ARE IMPORTANT UPDATES FOR 2020
For questions about rental requirements please contact Aaron Pope at apope@cityoffollybeach.com.
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 must be applied for in person at City Hall by bringing in a completed Business License Application.
License renewals must be completed February 1. Do not mail in payment. You can renew your Folly Beach license online for no additional charge through Charleston County’s webpage. If you don’t know your license account number email the owner name and the street address of the rental property to apope@cityoffollybeach.com. You can also renew your license in person at City Hall by bringing in a completed Business License Application.
License Fees are calculated on your gross rental income from the previous year (if this is your first year you may estimate). For 2020 the rental license fee has increased for short term rentals.
For a short term rental: Round your gross income to the next $1,000 dollar increment. Always round up! For the first $2,000 the fee is $145. For each additional $1,000 of income you add $2.75 per thousand.
EXAMPLE:
Gross income= $6,000.35
Round Up: $7,000
$145 for the first $2,000
$2.75 for each additional $1,000 (5 x $2.75)=$13.75
Total Due: $158.75
For a long term rental (that is exclusively rented long term and never rented short term): Round your gross income to the next $1,000 dollar increment. Always round up! For the first $2,000 the fee is $45. For each additional $1,000 of income you add $2.75 per thousand.
EXAMPLE:
Gross income= $6,000.35
Round Up: $7,000
$45 for the first $2,000
$2.75 for each additional $1,000 (5 x $2.75)=$13.75
Total Due: $58.75
2) A Rental Registration is required for short term rentals in addition to the business license. There is no charge for the rental registration but you must complete it if you rent your house at any time on a short-term basis (less than 30 days).
New registrations may be completed online or in person at City Hall. You must have your 2020 business license number in order to complete the registration.
Registration renewals must be completed February 1. Do not mail in registrations. You can renew your rental registrations online for free. If you don’t know your 2020 license account number email the owner name and the street address of the rental property to apope@cityoffollybeach.com. You can also renew your registration in person at City Hall by bringing in a completed Rental Registration Form 2020.
3) Beach Rules must be posted in all short term rentals and provided to all renters.
4) Sales and Accommodations Taxes
The rules for when you are required to collect sales an 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 (ie: 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 State |
| State Local Options Sales Tax | 1.0% | Remitted to 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% |
For questions, forms or additional information concerning the taxes please contact:
Aaron Pope at apope@cityoffollybeach.com or (843) 513-1839
or Spencer Wetmore at swetmore@cityoffollybeach.com or (843) 513-1834.
