Short-term rentals in Simpsonville, explained properly.

Sec. 10-294(b) says permits are issued only to persons with a valid business license under chapter 10, article 2 of the Code of Ordinances. If the permittee's business license is revoked, suspended or lapsed, the short-term rental permit is automatically and immediately revoked (Sec. 10-298(a)(1)). The permit and the business license are renewed together each year (Sec. 10-296(b)). The business license article and fee schedule were not read.

Sec. 10-296(a) puts this condition on every permit. Short-term rental agent changes are separate: an owner may change the designated agent temporarily or permanently by notifying the planning department in writing within seven calendar days (Sec. 10-297(f)).

Sec. 10-295(b) sets the application fee at $250.00 as it may be amended from time to time by the city's annual fee schedule. The fee schedule was not read, so the current amount and its effective date are not confirmed. An application fee is not required for short-term rentals that were operating on the ordinance's enactment date, except those found operating without a permit within the 120-day grace period; rentals found operating without a permit after the 120-day period pay the $250.00 fee.

Sec. 10-295(a) lists what the application must include, and the list is not limited to these items: the owner's name, address and phone; the agent's name, address and 24-hour phone and e-mail; a copy of the deed (or a notarized statement for owner-financed or similar arrangements); the number of bedrooms; the owner's signed sworn acknowledgement that they have received and understand the City's short-term rental regulations; an agreement to use best efforts to prevent neighborhood disruption; proof of property and liability insurance, including any short-term rental rider; the agent's written certification that the agent will perform the listed duties; for properties in a neighborhood with an HOA, the agent's written certification that the covenants and bylaws permit short-term rentals; agreement to give city personnel inspection access; and the form of written agreement between owner and occupants.

Sec. 10-296(b) requires annual renewal of the short-term rental permit and business license subject to the deadline for business license renewals. The renewal deadline date and any renewal fee were not read.

The owner designates one, and only one, short-term rental agent on the permit application; the owner may serve as agent if they meet the age and location requirements. Sec. 10-297(a) says the agent shall reside within a twelve-mile radius of the property, while the definition of short-term rental agent in Sec. 10-292 says a fifteen-mile radius. The two sections differ, so the distance is marked for review. The agent is responsible for care and maintenance of the residence, routinely monitoring and inspecting the premises, and receiving and responding to City notifications about overcrowding, noise, disorderly conduct or other violations. Service of a notice or summons on the agent counts as service on the owner of record. An owner who changes agents must notify the planning department in writing within seven calendar days.

Sec. 10-295(a)(11)d requires the owner-occupant written agreement to include the occupants' agreement to conform to the technical codes the City has adopted under article II of the Code of Ordinances and states that in addition there shall not be more than two adults per bedroom. Adult is defined as any person at least 21 years in age (Sec. 10-292). The permit application also lists the number of bedrooms.

Under Sec. 10-295(a)(11) the agreement between owner and occupants must at minimum contain: the occupants' agreement to abide by the City's short-term rental regulations and applicable laws, and that their rights cannot be transferred or assigned; the owner's acknowledgement that the occupants were given a written copy of the City's noise ordinance; the acknowledgement that parking is maintained under the minimum parking provisions of article 4.5 of the Zoning Ordinance while the property is a short-term rental; conformity with the adopted technical codes and no more than two adults per bedroom; the owner's acknowledgement that occupants were given the public works department's trash disposal requirements and agreed to comply; and the occupants' acknowledgement that a violation may lead to immediate termination of the agreement and eviction by the owner or agent, and to fines levied by the City. Article 4.5 of the Zoning Ordinance was not read, so the parking counts are not given.

Sec. 10-293 applies unless the article specifies otherwise. The penalty amounts in Sec. 1-9 of the Code were not read. Fines levied by the City are also named in the occupant agreement terms (Sec. 10-295(a)(11)f).

Grounds in Sec. 10-298(a) include a revoked, suspended or lapsed business license (automatic revocation), lack of the required insurance, failure to correct violations after written notice, failure to take positive action to prevent repeat violations, and three code violation convictions for the property within 12 months, which automatically suspends the permit for 12 months and means pending licenses or applications at that location are rejected for 12 months. Except for revocation for a business license problem, the administrator gives written notice stating the action and reason, effective on notice. The permittee or applicant may appeal to city council within five working days from receipt of notice; the hearing is held within 30 days of the appeal request, and the decision is final. An appeal does not stay the action.

Sec. 10-296(c) makes this a condition of every permit. The article does not give a City accommodations tax rate. State tax rules that also apply are shown under State law below; the City's own business license and any local accommodations tax were not read, so no combined rate is given.

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.