Short Term Rentals
All property owners who rent residential units (i.e. houses, condos, apartments, hotel rooms) for any length of time must obtain an Isle of Palms short term rental business license.
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.
Analysis of Short-Term Rentals per Type of Dwelling as of October 31, 2023.
Short-Term Rental Application
Owners of short-term rentals must acknowledge that they have read and understand certain code requirements listed below under the Short-Term Residential
Business License Disclosure as part of the application process.
As part of the application, applicants must also provide the following documentation:
- Fire Safety Acknowledgement Form
- Copy of one of the following forms to verify gross receipts: (Applicants should consult their tax advisor with questions about these forms)
- Schedule E (Form 1040) for individuals or Form 8825 for corporations
- Schedule C (Form 1040) For Sole Proprietor
- Form 1120 or Form 1120s
- Form 1065
Fees
Short term rental license fees are based on the gross income generated by the rental during the previous calendar year.
The fee is $450 for the first $2,000 earned in gross income and $4.60 for each additional thousand in gross income. A fee schedule is linked here.
To avoid late fees please ensure rental fees are paid by April 30th.
Short Term Residential Business License Disclosure
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.
Maximum Occupancy at Any Time. At no time shall the total number of persons at a residence exceed twice the overnight occupancy or forty (40) persons, including children, whichever is less.
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.
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.
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.
Contact Information. The owner must provide the City with a 24/7 telephone number that can be used to contact an owner or an owner's representative. The owner's representative must be able to be on site within one hour.
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.
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. The City may revoke a license when the licensee has had five (5) or more complaints of unlawful activity within a single calendar year that are determined to be founded by the Police Department.
Short-Term Rental Parking Permit
Additional Information on Short-Term Rentals of Residential Property
- 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.
- 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.
- 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.
Refund and Cancellation Policy
Please see below for information on Business License Tax Refunds. This ordinance applies to both business licenses and rental licenses.
Sec. 7-1-4. - Business license tax, refund.
A. The required business license tax shall be paid for each business subject hereto according to the applicable rate classification on or before the due date of the 30th day of April in each year, except for those businesses in Rate Class 8 for which a different due date is specified. Late payments shall be subject to penalties as set forth in section 7-1-12 hereof, except that admitted insurance companies may pay before June 1 without penalty,
B. A separate license shall be required for each place of business and for each classification or business conducted at one (1) place. Each housing unit shall be deemed to be a separate place of business for purposes of determining the number of different licenses required by lessors of residential housing units. If gross income cannot be separated for classifications at one (1) location, the business license tax shall be computed on the combined gross income for the classification requiring the highest rate. The business license tax must be computed based on the licensee's gross income for the calendar year preceding the due date, for the licensee's twelve-month fiscal year preceding the due date, or on a twelve-month projected income based on the monthly average for a business in operation for less than one (1) year. The business license tax for a new business must be computed on the estimated probable gross income for the balance of the license year. The initial business license tax for an annexed business shall be prorated for the number of months remaining in the license year. A business license related to construction contract projects may be issued on a per-project basis, at the option of the taxpayer. No refund shall be made for a business that is discontinued.
C. A licensee that submits a payment greater than the amount owed may request a refund. To be considered, a refund request must be submitted in writing to the City before the June 1 immediately following the April 30 on which the payment was due and must be supported by adequate documentation supporting the refund request. The City shall approve or deny the refund request, and if approved shall issue the refund to the business, within thirty (30) days after receipt of the request.
Contact Information
Isle of Palms
Short-Term Rental Coordinator
Jeanne Garrett
843-886-9912
City Hall, 1207 Palm Boulevard
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
Department 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.