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FLOOD & HURRICANE INFORMATION

Rules for Renting Your Home at Folly

This page contains the information you need to make sure that your home is being rented in a manner consistent with Folly Beach Regulations. 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) Business License is required for short or long term rentals.

You must obtain a Business License for any rental of your home (short or long term). Your business license must be renewed by February 1 every year. Short Term rentals must have the business license number posted in the unit and in all advertisements for the unit.

  • Business License Application (print and mail with payment)
  • The fee for Rental Licenses is based on your prior year income (if this is your first year you may estimate). To determine the fee due: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

  • If you are renewing an existing license, you can pay ONLINE HERE for no additional charge. If you are opening a new license account please bring your application to City Hall with payment, or send it by mail to City of Folly Beach, PO Box 48, Folly Beach, SC 29439

2) Rental Registration is required for short term rentals only.

If you rent your house on a short-term basis (less than 30 days), you must also obtain a Rental Registration in addition to your business license, which allows the City to maintain information on your short-term rental. This must also be renewed in January of each year. The rental registration fee is $100. Renewals not submitted by February 1, 2019 will be $200.

3) Beach Rules and Information for short term rentals.

You must also post the Beach Rules in the home, where they can be easily seen by all renters:

  • Beach Rules, required to be posted in all rental properties

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.