Short Term Rentals

 All property owners who rent residential units (i.e. houses, condos, apartments, hotel rooms) for any length of time must obtain a Isle of Palms business license. Business licenses can be obtained at the City's Building, Planning and Zoning Department at 1207 Palm Boulevard. For more information, please call the office at 843-886-9912 or you can email Nicole Morris or Mary Ann Harbin.

The short term rental ordinance for City of Isle of Palms can be found at the link here.

It specifies, among other things, the calculations for maximum overnight occupancy.

Short Term Rental Application

Owners of short term rentals must acknowledge that they have read and understand certain code requirements as part of the application process. Before filling out the application, please read the section below entitled Short Term Rental License Disclosure. The rental application can be found at this link.

Fees

Short term rental license fees are based on the gross income generated by the rental during the fiscal year that begins July 1st and ends June 30th. Renewals are mailed in June of each year. To avoid late fees please ensure rental fees are paid by August 31st. A fee schedule is linked here.

In general, however, the fee is $350 for the first $2,000.00 earned in gross income and $4.60 for each additional thousand in gross income.

Short Term Residential Business License Disclosure

E.1. Maximum Overnight Occupancy. The maximum overnight occupancy of a residence is typically two people per bedroom, plus two people up to a maximum occupancy of 12. (excluding children under the age of two (2) years)

Upon the issuance of a rental license, the City will provide a written notice to be posted in the residence that will indicate the maximum overnight occupancy.

E. 2. Maximum Occupancy at Any Time. At no time shall the total number of persons at a residence exceed forty (40) persons, including children.

E. 3. Maximum Number of Vehicles. The maximum number of vehicles that may be located at a residence between the hours of 11:00 p.m. to 9:00 a.m. shall be limited to the greater of one vehicle per bedroom or one vehicle for every 2.5 people allowed under the maximum overnight occupancy. In no instance shall the number of vehicles allowed be less than two.

E.4. Single-Family Homes. Rental units must be offered in their entirety. Owners cannot offer private rooms or shared rooms within single-family homes as this violates the single-family zoning and building code provisions of the City.

E.5 Written Notice to be Posted in Residence. A written notice provided by the City which contains information about certain ordinances generally impacting tenants of Short-term rentals shall be posted conspicuously and maintained in the unit by the owner and displayed at all times.

E.6 Contact Information. The owner must provide the City with a 24 hour per day telephone number that can be used to contact an owner or an owner's representative.

E.7. General Penalty. Any rental unit owner or person or entity in possession or control of a rental unit, who knowingly allows other persons or entities to violate or to continue to violate any provision of the City Code on the property of such owner, or who knowingly allows habitual violations of this Code to occur on the property is guilty of a misdemeanor and shall be punished by a fine not exceeding $500, exclusive of court costs or imprisonment for a term not exceeding 30 days or both per the discretion of the municipal judge. Each day of any such violation shall constitute a separate offense.

E.8 Revocation of License. The City may revoke a license when a licensee has engaged in or allowed an unlawful activity or nuisance relating to the business; or licensee has demonstrated an inability or unwillingness to prevent licensee's tenants from engaging in unlawful activities or creating nuisances related to the business.

Additional Information on Short-term Rentals of Residential Property

  1. Unless the property qualifies as the primary legal residence of the owner according to the SC Code of Laws, Section 12-43-220, the property will be assessed at 6% of the fair market value for purposes of calculating property taxes.
  2. South Carolina law states that all items of personal property used to furnish rental units shall be assessed for property tax purposes. The SC Code of Laws also requires that an annual report of valuation of this property be filed between January 1st and April 30th. More information can be obtained at the Charleston County Auditor's Office, 101 Meeting Street in Charleston (843-958-4000) or at the County's website, http://www.charlestoncounty.org.
  3. Residential Rentals for periods of 30 days or less (for Charleston County and City of Isle of Palms) or 90 days or less (for the State of SC) require collection and remittance of the following taxes:

Remit To:

%

Tax or Fee

State of SC

5.0%

State Sales Tax

State of SC

1.0%

Local Option Sales Tax

State of SC

1.0%

Charleston County Transportation Tax

State of SC

2.0%

State Accommodations Tax

State of SC

1.0%

Charleston County School Tax

Charleston County

2.0%

County of Charleston Accommodations Tax

Charleston County

1.0%

City of Isle of Palms Accommodations Tax

Charleston County

1.0%

City of Isle of Palms Beach Preservation Fee

Total Tax

14%

 

While an owner can designate their agent to collect and remit these taxes, the property owner is ultimately responsible for the proper payment of these taxes.

Contact Information:

Charleston County 

Charleston County Business License/User Fee Dept

Britt Miller, Revenue Collections
Charleston County Government
843-202-6080
bmiller@charlestoncounty.org

State of South Carolina

Dept of Revenue Charleston District Office

843-852-3600
http://www.sctax.org

Failure to comply with these provisions could result in monetary penalties and interest charges.