Short-Term Rental Laws in Folly Beach, South Carolina

Folly Beach voters approved a cap of approximately 800 non-owner-occupied STR licenses via referendum in 2022, with existing licenses grandfathered. The cap is binding — new applicants enter a waitlist when the cap is full, and licenses transfer with the property but cannot be created from new ground. Owner-occupied STR (operator's primary residence) is uncapped and permitted in all residential zones. This cap was specifically designed to halt the conversion of long-term housing to STR following years of rapid expansion. Folly is among the more restrictive SC beach markets as a result.

STR is permitted in all residential and commercial zones subject to the 800-license cap for non-owner-occupied operation. Owner-occupied STR (primary residence) is exempt from the cap and is the only growth path for new entrants when the cap is full. Charleston County's separate accommodations tax registration applies. The cap is the binding investment-eligibility test — confirm current cap availability via the city Business License office before any offer; license transfer with property is the typical acquisition path for capped inventory.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Folly Beach Business License Division + Code Enforcement actively enforce. Operating without a license (especially non-owner-occupied above the cap): civil penalties starting at $500+ per violation, daily stacking. Annual renewal required for all license types. The cap is enforced via Business License registry — applications above the cap are placed on a waitlist. Charleston County collects the 2% accommodations tax separately and cross-references with the city license registry.

Combined short-term lodging tax in Folly Beach is approximately 14.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

SC State sales tax 6% + Charleston County local option 1% + Charleston Accommodations Tax 2% + Folly Beach Hospitality Tax 2% + state accommodations tax 3% — combined ~14.0% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.