Worried about Hilton Head’s plan for vacation rental business licenses? How to weigh in
Are you confused or frustrated about the proposed changes to Hilton Head Island’s business license rules for short-term rental owners?
You’re in luck. The town is hosting two public forums on the issue. One will be Tuesday at 9:30 a.m. and the other will occur Aug. 3 at 2 p.m. The events will be in the Town Hall council chambers at 1 Town Center Court.
Business owners will be able to ask questions and make comments, said Communications Director Carolyn Grant.
A change in South Carolina business license law will require all property owners on the island who rent one room or a home to have an active business license as of January 2022.
People who currently own and rent just one unit are not required to have a business license issued by the town.
The change will mean an additional cost to short-term rental owners and, potentially, renters.
A business license for a short-term rental owner will cost at least $95.50 for individuals making up to $2,000 per year on their rental, according to the new standardized rate schedule.
Individuals making more than $2,000 on their rental will be taxed a rate of $1.70 per $1,000 of income on top of the base rate. In some cases, rates for nonresident business owners are doubled.
Changes to the local business licensing structure come as a result of the S.C. Business License Standardization Act, which will make it easier to get and renew business licenses across the state, especially for businesses that operate in multiple counties.
The state standardization will require all short-term rental owners to keep a business license and renew it annually.
That change will affect more than 2,500 short-term rental owners on Hilton Head, according to April Akins, the town’s revenue services manager.
The Town Council will have its first reading of Hilton Head’s standardized business license ordinance on July 20, The Island Packet previously reported.
