CONTRAST — City of Folly Beach: capped, and effectively closed to new investor licences

Folly Beach licenses short-term rentals but sorts them into categories and caps the investor category. The city's own page defines: Long Term (LTR) "homes that are rented for 30+ days at a time"; Owner Occupied Short-Term (OSTR) "rented for 29 days or less at a time" at the 4% property tax rate; Investor Short-Term Rental (ISTR) "rented for 29 days or less at a time" at the 6% property tax rate; and Provisional Short-Term Rental (PSTR), "short-term rental for no more than ninety (90) days." So Folly's short-term line is 29 days or less, not under 30 — the same practical effect, different wording. AVAILABILITY: the city's page states "No new licenses are projected to be available for the next business license year," and for the investor category new licences are unavailable except through inheritance or medical hardship. There is a Short-term Rental Waitlist. PUBLISHED FEES: LTR "$45 which covers $2,000 of income. After that, the charge is $2.75 for each additional $1,000"; OSTR/ISTR "$245 which covers $2,000 of income" plus a registration permit at "$17.50 per $1,000 of income." MINIMUM USE: "a property must be rented at least 28 days per year." OSTR holders are subject to a 72-day annual rental limit under state law (the SC 4% legal-residence assessment rule). The 800-licence investor cap came from a February 2023 citywide referendum and has been litigated; the city maintains a public "STR License Cap Timeline and Information" page, and as of the date checked that page shows continuing council activity, including a July 21, 2026 work session on an RFP for a Short-Term Rental Ordinance study. Anyone relying on the cap's status should call the city. Contact: rentals@follybeach.gov or licenses@follybeach.gov, (843) 588-2447 ext. 1866, Monday-Friday 1:00 p.m.-5:00 p.m. City accommodations fee 2% plus Charleston County 2%.