The Town of Hilton Head Island has put into effect a short term rental ordinance that applies to any privately owned properties used as vacation homes and short-term rentals (rentals less than 30 days). If you own a short term rental property the following rules and regulations will apply:
1. Short Term Rental Property owners are required to have a permit for each rental property owned
– This includes all residential properties rented for less than 30 days at a time.
– The Town is accepting applications through its online portal.
– The permit application process includes compliance in the areas of Noise, Trash, Parking, Response Time and Safety: Short Term Rental Permit Requirements for Owners
Each year, the Short Term Rental Permit must be renewed. In 2023, the fee is $250 per property.
Short Term Rental Permit Information and Portal on Town Website
2. Short term rental property owners are required to have a business license
– You must have a short-term rental permit before you can register for a business license.
– Whether you own one rental property or multiple properties, only one business license per owner is required.
– The business license application fee is $10.
Each year, a Business License Tax must be paid by the end of April. Business License Tax is calculated on gross revenue from the previous calendar year per the following example:
For a rental property with $149,300 in Gross Rental Revenue:
- Round up to nearest thousand, $150,000
- Pay $92.50 for first $2,000 of rental revenue
- $150,000 - $2,000 = $148,000 (remaining gross revenue balance)
- Divide remaining balance ($148,000) by 1000 and multiply that number by 1.7
- $148,000/1000 = 148
- 148 x 1.7 = $251.60
- Add $92.50 + $251.60 = $344.10 (Busines License Tax Due)
Short Term Rental Business License Information and Application on Town Website
3. Short-term rental property owners are required to collect 10% state and local accommodations taxes
– This is for anyone renting residential property to the same person for less than 90 days.
– You may collect and remit the taxes yourself or have a Licensed Property Manager collect and remit the rental taxes for you.
– The state and local taxes are collected on gross rental income.
– Destination Vacation collects and remits all accommodations taxes, on behalf of the property owner, for all of our properties.
4. (Sea Pines Property Owners, only) Sea Pines/CSA Rental Registration Program
– This final regulation applies to residential property owners in Sea Pines that rent their homes at any time during the calendar year.
– Owner must register rental property with Sea Pines and pay the annual fee associated with the # of bedrooms in the home or villa.
– Rental Registration Program fee is non-transferrable, non-refundable and not able to be prorated in the event of a property changing ownership.
2023 Rental Registration Fee
- # of Advertised Bedrooms: Annual Fee
- One to Two Bedrooms: $300
- Three to Four Bedrooms: $700
- Five or More Bedrooms: $1,000
Sea Pines/CSA Rental Registration Program Information (FAQs, Fees, Registration Process, etc.)
5. (Palmetto Dunes Property Owners, only) Palmetto Dunes Short Term Rental Registration
-This annual registration applies to residential property owners who rent their homes in the short-term rental market for any period of less than 90 continuous days for monetary consideration within Palmetto Dunes.
-Registration provides the necessary owner and property management information allowing the POA to quickly contact the appropriate individuals about property situations and guest needs.
-This annual registration is mandatory and remains valid from January 1st through December 31st. Registering your short-term rental property with the POA is both free and a separate requirement from the permit and business license required by the Town of Hilton Head. To ensure compliance with the Association, your 2024 short-term rental registration must be submitted by April 30th.
Palmetto Dunes Short-Term Rental Registration Portal