Short-term rentals in Port Royal, explained properly.

Article V defines a short-term rental as a transient vacation rental or use in which overnight accommodations are provided in dwelling units to guests for compensation, for periods of fewer than twenty-nine (29) days. The article ties the definition to NAICS code 72119 (Other Traveler Accommodation). An accessory dwelling unit for this purpose is an accessory building on the same parcel as a residence, containing all living spaces required to qualify as a residence, that is used as a short-term rental (Sec. 12-62).

These are the three types of short-term rental for which Sec. 12-63(a) says a business license may be issued. The 6% district cap does not apply to accessory dwelling units within or on the same parcel as a legal residence (Sec. 12-65(a)).

The applicant provides up-to-date contact information, including name, address of legal residence and telephone number. The applicant identifies a local property manager, with up-to-date contact information, if the owner of the short-term rental does not occupy the premises and resides more than one hundred (100) miles away from the rental. The property manager must be able to appear on the premises to respond to a complaint within three (3) hours of being notified (Sec. 12-65(e)).

The rental agreement must state the maximum number of guests, based on the number of beds. For a rental of an entire residential dwelling (not an ADU) the maximum is two (2) adult guests per bedroom, plus two (2). For accessory dwelling units the maximum is four (4) plus two (2) adult guests, regardless of the number of available bedrooms (Sec. 12-65(c)(2)).

On-site parking is preferably located to the side or rear of the rental, if feasible, and delineated with an improved surface such as pavement, gravel or another surface approved by the town manager. The rental agreement states the number of parking spaces provided on site (Sec. 12-65(b), (c)(3)).

The applicant provides a draft of the rental agreement, which must also specify the minimum stay, the maximum number of guests and the number of on-site parking spaces. Pets, if permitted, may not be left outside unattended, and pets and owners must comply with Town of Port Royal and Beaufort County animal control ordinances (Sec. 12-65(c)). Rental rules, including garbage and recycling schedules and noise and pet ordinance information, are displayed in the rental in a conspicuous location (Sec. 12-65(g)).

All advertisements, listings with booking services, marketing materials and other online websites and listing or booking platforms must include the business license number (Sec. 12-65(d)). On-site advertising signs are not permitted (Sec. 12-65(f)).

Sec. 12-65(h) applies to short-term rentals located in a neighbourhood or multifamily structure with a property owners' association. Operators are responsible for complying with property owners' association requirements.

The business license holder bears ultimate responsibility for paying accommodation taxes to the town as required by law. When using platforms such as Airbnb, VRBO or Evolve, the holder must obtain and provide to the town a detailed report outlining the exact dollar amounts collected and remitted to each entity (state, county and municipality). If the report is not provided, the holder makes all monthly accommodation tax payments directly to the Town of Port Royal (Sec. 12-65(d)). The rates are not stated in Article V and this page does not give a combined total. Sec. 12-64, the accommodation fee section, was repealed by Ordinance 2024-19.

The town notifies any property owner found operating a short-term rental without a business license. If the owner chooses not to submit an application within sixty (60) days of being notified, a short-term rental application shall not be approved for two (2) years (Sec. 12-65(j)). The saved article text does not give a fine or penalty amount.

Article V says the provisions of Chapter 12, Article II on denial or revocation of business licenses, including all appellate rights, apply to denial or revocation of licenses for lack of compliance with Article V (Sec. 12-66).

South Carolina charges a 7% tax on rent for rooms, lodgings or sleeping accommodations furnished to transients, including rentals of a residence (S.C. Code § 12-36-920(A)). The South Carolina Department of Revenue (SCDOR) describes this as 5% sales tax plus 2% accommodations tax, together with any local sales and use taxes that SCDOR collects for counties. SCDOR's ST-575 chart lists the total accommodations rate for each county and city.

SCDOR applies accommodations tax to sleeping accommodations of any kind rented to guests for less than 90 consecutive days, including rooms or spaces in your own home and condos. Rentals to the same person for 90 continuous days are not taxed. A home with six or fewer bedrooms is exempt only when the owner or operator lives on the same premises at the time and does not use a rental agency or online travel company to rent the rooms.

SCDOR says owners who book short-term rentals directly must hold a Retail License to file and pay accommodations tax, with one license for each rental location. If you rent only through a property management or online travel company that takes the reservation and the payment, that company remits the tax for the full booking and you do not need a Retail License. A license is also not required if you rent a room or space for no more than one week each calendar quarter, but the tax must still be filed and paid once a year.

Accommodations tax returns and payments must be filed electronically (SCDOR's MyDORWAY or approved software), by the 20th of the month following the end of the filing period.

Under the Local Accommodations Tax Act, a city or county may add a local accommodations tax of up to 3% on stays taxed under S.C. Code § 12-36-920(A). A county may not charge more than 1.5% inside a city or town without that municipality's consent. SCDOR notes that many local accommodations taxes are not administered by SCDOR, so owners must contact the city or county where the rental is located to report them.