Accommodations Tax for Short Term Residential Rentals

The City of Charleston recently passed an ordinance to regulate short term rentals (STRs) in all areas of the city, which took effect on July 10th, 2018.

A short term rental (STR) refers to any rental of a dwelling unit/bedroom as a residential accommodation for less than 30 consecutive days. The ordinance permits STRs in a homeowner's primary residence and requires the owner to obtain both a permit and a business license in all cases.  More specific regulations may apply depending on the STR permit category.  Click here for a Short Term Rental Application Guide.

Requirements:

1.) A 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.

Please contact the City of Charleston Revenue Collections Division for questions about Business Licenses (843-724-3711) or visit our website at Business License Information.

2.) A Short Term Rental Permit is required. 

You may apply for a STR permit at the City of Charleston Permit Center, 2 George Street, 1^st floor or online at Short Term Rental Permit Information.

3.) Sales and Accommodations Taxes

Short term rental operators 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.

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. Rules may differ between city, county and state taxes. See below for more information.

NOTICE: If your short-term rental property is rented through an online marketplace, be aware that not all of these entities collect and remit the local accommodations tax on your behalf.  Some only collect and remit the state imposed accommodations tax.  It is your responsibility to determine if you need to collect and remit the local accommodations tax to Charleston County as shown on the above chart.  There are substantial penalties for failing to collect and remit this tax.  State law allows a civil penalty of not less than five hundred dollars nor more than two thousand dollars for each seven days the property was rented.