§ 117.01 PURPOSE, APPLICABILITY, AND DEFINITIONS.
   (A)   The purpose of this chapter is to regulate the licensing of dwelling units as short term rentals in order to:
      (1)   Protect the integrity of the city’s neighborhoods and the quality of life of its citizens;
      (2)   Establish a system to track the short term rental inventory in the city;
      (3)   To protect the health and safety of occupants of short term rental units;
      (4)   To ensure a level playing field for individuals in the short term rental market; and
      (5)   To protect the residential character of the dwelling units within the city.
   (B)   The following definitions apply:
      DESTINATION CLUBS. Destination or private vacation clubs ("destination clubs") are classified as private and/or exclusive membership organizations or commercial businesses primarily engaged in providing short term overnight accommodations and related services for its club members with non-ownership interest who seek alternative options to standard vacation home rentals. DESTINATION CLUBS typically own or lease properties from the owners on a long term basis, provide those properties in a variety of locations to its members on a short term basis, and model a membership access structure where its members purchase membership levels granting access to properties and personalized services. Properties offered by destination clubs to a member for less than 30 days are considered short term rentals whether the destination club is an owner of record or a lessee. All references to "owners” in this chapter apply to destination clubs.
      DWELLING UNIT. A structure, or portion thereof, providing complete living facilities for a single family including a complete kitchen. One structure may contain multiple dwelling units with different property tax classifications.
      GOOD STANDING. A license shall be considered in good standing if:
         (a)   The license has not been denied, revoked, or suspended in the current license year. A license which has been denied, revoked, or suspended in the current license year shall not be renewed except upon successful appeal of the denial, revocation, or suspension.
         (b)   The license has not expired. A license shall be deemed expired ten business days after the final day of the previous business license year.
         (c)   The dwelling unit for which the license was issued has been rented for a minimum of 28 nights in the current business license year except that the minimum nights rented shall be waived in the event that:
            1.   A natural disaster or other Act of God renders the dwelling unit uninhabitable for a period of more than six months in the current business license year; or
            2.   Work related to valid building permit, carried out to address life, safety, or health violations documented by the Building Official renders the dwelling unit uninhabitable for a period of more than six months in the current business license year.
      HOUSE EXCHANGE PROGRAMS. The occasional occupancy of a residential occupancy assessed by Charleston County at a 4% property tax rate by someone other than the owner of the residence while the owner is temporarily absent from the residence, and no monetary compensation is paid to the owners for such occupancy. HOUSE EXCHANGE PROGRAMS are not short term rentals.
      INVESTMENT SHORT TERM RENTAL BUSINESS LICENSE (ISTR). A license issued for a dwelling unit, to be rented as a short term rental, that:
         (a)   Is not the legal residence of the owner; or
         (b)   Is not the legal residence of the owner and was inherited from the person named as of record on February 7, 2023; or
            1.   Proof of inheritance shall be shown through a deed of distribution, court order, will or similar document.
            2.   Application for an ISTR due to inheritance must be made within 90 days of transfer of ownership.
         (c)   Is owned by the owner of record on February 7, 2023 upon certification that the owner no longer resides on the premises and is housed in a care facility, or requires care at another private location; or is no longer capable of performing at least three activities of daily living.
            1.   Activities of daily living are defined as personal hygiene tasks (bathing, grooming, oral, nail and hair care); medication management; walking independently; dressing; transferring in and out of bed; and maintaining continence.
            2.   Certification that an owner can no longer perform activities of daily living shall be provided on a form approved by the city and completed by a licensed medical doctor, doctor of osteopathic medicine, physician assistant, or advanced practice registered nurse.
            3.   Proof of care shall be through a lease agreement or similar document, or a contract for in-home care.
            4.   Certification for an ISTR issued due to medical hardship shall be submitted annually.
            5.   No more than one ISTR may be obtained by any owner through hardship.
      LEGAL RESIDENCE. A dwelling unit assigned a 4% property tax ratio by the Charleston County Assessor’s Office under the requirements of S.C. Code § 12-43-220.
      OWNER-OCCUPIED SHORT TERM RENTAL BUSINESS LICENSE (OSTR). A license issued for a dwelling unit to be rented no more than 72 nights annually that:
         (a)   That is the legal residence of the owner.
         (b)   That is the legal residence of the owner but given a 6% property tax rate by Charleston County and is licensed after February 7, 2023.
      PROVISIONAL SHORT TERM RENTAL LICENSE (PSTR). A license issued for a dwelling unit to be used as a short-term rental for no more than 90 days to allow compliance with the requirements of the South Carolina Vacation Rental Act, specifically S.C. Code § 27-50-250. A PSTR shall only be issued to the purchaser of an existing short-term rental with ISTR or OSTR license in good standing, is valid only for rental contracts disclosed under the terms of the Act, and shall expire at the end of the last authorized rental period. All rental nights allowed by a PSTR shall count towards the 72 rental nights allowed by an LSTR license should the dwelling become the legal residence of the owner.
      RENTAL OCCUPANT. Any person who, in exchange for compensation paid, occupies a dwelling unit for less than 30 days.
      SHORT TERM RENTALS. A dwelling unit, or any portion thereof, rented for any period less than 30 days and used in a manner consistent with the residential character of the dwelling. Tourist accommodations, including hotels, motels, inns, and bed and breakfasts, are not considered SHORT TERM RENTALS.
      TIME SHARES. “Vacation time sharing plans” as defined in S.C. Code § 27-32-10(9) are not short-term rentals. However, any “vacation time sharing lease plan” as defined in S.C. Code § 27-32-10(8) that is less than three years is considered a short term rental. “Vacation multiple ownership interests” as defined in S.C. Code § 27-32-250(1) are not short term rentals.
      TRANSFER OF PROPERTY. An assessable transfer of interest in real estate triggering an appraisal and reassessment for taxation purposes as defined by S.C. Code § 12-37-3150.
(Ord. 19-10, passed 9-28-10; Am Ord. 26-17, passed 1-9-18; Am. Ord. 027-22, passed 9-13-22; Am. Ord. 033-22, passed - -; Am. Ord. 003-23, passed 4-11-23; Am. Ord. 001-24, passed 2-20-24)