Purpose and scope This guide synthesizes all the provided content to help short‑term rental investors understand whether STRs are allowed in Marion, South Carolina, and what it takes to launch and operate legally. It covers the zoning district permissions, required documents and registrations, tax obligations, safety and insurance expectations, and the regulatory contacts that matter. Where city‑specific STR rules are not provided, state‑level South Carolina requirements are applied.

Note on sources and limitations

• State‑level STR rules summarized below come from the provided Lodge Compliance state guide for South Carolina.
• Marion‑specific rules are extracted from the City of Marion Zoning Ordinance (2020).
• No explicit Marion short‑term rental permit, license, or fee schedule is included in the provided materials. Where information is absent, we flag it and direct you to the appropriate local authority for confirmation.

Links to source pages

• State overview and definitions: www.lodgecompliance.com/states/south-carolina
• City of Marion Zoning Ordinance (official PDF): marionsc.gov/wp-content/uploads/2020/01/City-of-Marion-Zoning-Ordinance.pdf

1) Overview: Are Short‑Term Rentals Allowed in Marion, SC?

Direct answer

• Short‑term rentals are not outright banned statewide in South Carolina and may operate subject to local zoning and tax/safety rules.
• Within the City of Marion, the Zoning Ordinance does not include a city‑wide definition or permitting program for “short‑term rentals” as a distinct use. Instead, lodging uses are governed under NAICS 721 (Accommodation and Food Services) by zoning district and use tables.
• Bed & Breakfast Inns (B&Bs) are expressly listed and treated as a conditional use in several districts. Traditional lodging uses (e.g., Hotels & Motels) are allowed only in certain commercial districts; they are not permitted in residential districts.
• Because the ordinance treats lodging under NAICS 721, the practical viability of an STR in Marion depends on:
  • The underlying zoning district of the property (residential districts generally do not allow lodging uses; commercial districts do, often as permitted or conditional uses).
  • Whether a B&B is appropriate (if the property is in a district where B&B is listed as a conditional use).
  • Compliance with all applicable city, county, and state requirements (business registration, taxes, safety/insurance, and inspections).

What this means for STR investors

• You must first confirm the zoning district of your property and check whether the intended lodging use is allowed “P” or conditionally allowed “C” (see Table I in the ordinance).
• If the zoning does not permit lodging but permits “Accessory Apartments” or “Home Occupations,” those may be alternative pathways under conditional processes, but they are not equivalent to a lodging use and typically do not allow transient stays comparable to commercial STRs.
• If your STR would function as a B&B, you will likely need conditional use approval in applicable districts and should plan for Historic District Commission review if located in the HCP overlay (see Section 302).
• Absent a city‑specific STR permit, compliance still requires a business license (city/county), state tax registrations, and adherence to state‑level lodging tax and safety standards (see sections below).

2) How to Start a Short‑Term Rental Business in Marion, SC

A practical, step‑by‑step approach

1. Confirm zoning eligibility

• Pull the official Marion zoning map for the subject address. The property must lie within a zoning district where lodging uses (NAICS 721) are permitted or conditionally permitted.
• Use Table I (Schedule of Permitted and Conditional Uses) of the Zoning Ordinance to verify the exact status by district.

2. Match the use category to the permitted path

• If the zoning lists “Hotels & Motels” (NAICS 72111) as “P” in your district (e.g., certain commercial districts), a lodging operation may be feasible by right in that district.
• If “Bed & Breakfast Inns” (NAICS 721191) is listed as “C” in your district, you will need to pursue conditional use approval and meet the additional standards of Section 702.
• If lodging uses are not permitted, consider alternative configurations (e.g., long‑term rentals) or a different property that is in an eligible zone.

3. Secure site control and safety

• Ensure the structure can meet building and fire safety standards. While the Zoning Ordinance does not enumerate STR safety codes, local practice typically requires working smoke detectors, fire extinguishers, and clearly marked egress routes. Expect inspection touchpoints (zoning, building, fire) before and/or after approvals.

4. Conditional Use process (if applicable)

• If your use requires “C” approval (e.g., B&B), prepare and submit a conditional use application per Article VII and Article X (Administration, Enforcement, Appeals). This process typically involves:
  • Application with required materials.
  • Staff review and scheduling for public hearing as applicable.
  • Compliance with Section 702 (B&B standards) and any other referenced sections.

5. HCP overlay review (if in Historic Conservation & Preservation District)

• If the property lies within the HCP overlay, you must obtain a Certificate of Appropriateness from the Historic District Commission before exterior work proceeds (Section 302). This overlay is tied to underlying zoning, with the HCP adding review standards.

6. Business license

• Obtain a City of Marion business license and any applicable county business license. The provided materials do not include the city’s business license contact details; confirm with Marion City Hall/Zoning.

7. State and local tax registrations

• Register for South Carolina Department of Revenue (DOR) accounts to collect/remit:
  • State sales tax (as applicable to the transaction).
  • State accommodations tax (often called “lodging tax”), subject to exemptions detailed below.
• Register for any local accommodations/hospitality taxes administered by Marion County or local municipalities (as applicable). Contact the county or local tax office to confirm current rates and remittance procedures.

8. Insurance

• Secure short‑term rental‑specific general liability insurance. Standard homeowner’s policies generally do not cover commercial short‑term rentals. Coverage should account for guest injuries, property damage, theft, and loss of rental income.

9. Property management and operations plan

• Develop standard operating procedures (check‑in, cleaning, guest communications), occupancy management consistent with fire/safety rules, and parking and signage compliance per Articles IV and V.

10. Ongoing compliance

• File and remit taxes on schedule, renew business licenses annually, and maintain inspections as required. Monitor any changes to state STR legislation (e.g., H. 3253 proposals) and local ordinances.

3) Required Documents, Permits, Licenses, and Guidelines

Documents and registrations typically required (subject to confirmation by local authorities)

Zoning and development

• Zoning determination for the subject address.
• Site plan showing access, parking, landscaping, and building layout where applicable.
• If lodging is a conditional use, complete the conditional use application and fee; prepare evidence addressing:
  • Compliance with Section 702 (B&B standards), if applicable.
  • Traffic, parking, and neighborhood compatibility.
  • Any conditions imposed by the Planning Commission/City Council.
• If in HCP overlay, prepare materials for a Certificate of Appropriateness:
  • Architectural plans and elevations.
  • Photographs and details of proposed exterior materials, colors, signage, lighting.
  • Additional materials as requested by the Historic District Commission.

Business licensing and tax registrations

• City of Marion business license (confirm current requirements/fees with city).
• County business license (if applicable).
• South Carolina Department of Revenue (DOR) registrations:
  • Retail license (if required; exemptions apply; see Section 4).
  • Accommodations/lodging tax collection setup.
  • Sales tax registration (if applicable).
• Local accommodations/hospitality tax registration (contact Marion County/local municipalities).

Safety and insurance

• Proof of general liability insurance for short‑term rental operations.
• Evidence of working smoke detectors, fire extinguishers, and posted emergency egress information (local practice expectation; confirm specifics with local inspectors).

Operational

• House rules, check‑in procedures, and guest occupancy policies consistent with parking, safety, and zoning constraints.
• Signage plan, if exterior signage is proposed (Article V governs signage; see Section 5).

4) Specific Regulations: City, County, and State

City of Marion (Zoning Ordinance, 2020)

• Zoning districts and lodging uses
  • Lodging is governed under NAICS 721 (Accommodation and Food Services).
  • Hotels & Motels (NAICS 72111) are allowed in certain commercial districts (e.g., LC, CC, GC) and are not permitted in residential districts.
  • Bed & Breakfast Inns (NAICS 721191) are listed as conditional uses in several districts (e.g., R‑12, R‑9, R‑6, RMH, OR, LC) and must comply with Section 702 (B&B standards).
  • Camps & RV Parks (NAICS 72121) and Rooming & Boarding Houses/Group Housing (NAICS 72131) appear as conditional uses in select districts.
• Conditional Use procedures and review
  • Article VII governs conditional uses; applications are reviewed under Article X (Administration, Enforcement, Appeals). B&Bs specifically reference Section 702 and any conditions imposed.
• Historic Conservation and Preservation (HCP) overlay
  • Section 302 requires a Certificate of Appropriateness for exterior alterations within the HCP overlay.
  • The HCP is an overlay: permitted uses follow the underlying zoning, with added design review standards.
• Parking and loading
  • Article IV sets general off‑street parking requirements and design standards (stall dimensions, aisles, surfacing, drainage, lighting, and landscaping). B&Bs typically require 1.5 spaces per guest room.
• Signage
  • Article V regulates signage by type, size, placement, illumination, and temporary signs. A Common Signage Plan is required in certain multi‑tenant or multi‑use situations (Section 502).

County level

• The provided materials do not include Marion County‑specific STR ordinances. In the absence of county‑specific STR rules, rely on state‑level requirements and general local business licensing practices.

State of South Carolina (from provided state guide)

• Definition for lodging tax purposes
  • Short‑term rentals are generally reservations for less than 90 consecutive days for state lodging tax purposes.
• Statewide tax regime
  • State sales tax and state accommodations (lodging) tax apply to most short‑term rentals. Local accommodations/hospitality taxes may also apply.
  • Registration with the SC Department of Revenue is required for the state accommodations tax.
• Exemptions and thresholds (as summarized)
  • Exempt from state accommodations tax if your total rental periods total fewer than 15 days in a taxable year.
  • If you rent out six or fewer bedrooms in a residence you own and live in, and you do not use a short‑term rental marketplace for guest transactions, you are not liable for state accommodations taxes.
  • If you provide accommodations for less than one week in any calendar quarter, you do not need to register for a retail license (but you still must collect and pay lodging tax).
• Legislative context
  • H. 3253 (if enacted) would prohibit local governments from banning short‑term rentals of residential dwellings for fewer than 29 consecutive days. Monitoring legislative changes is advised.
• Additional statewide obligations (varied by location)
  • Zoning compliance (confirm with local planning/zoning).
  • Business registration with the SC Secretary of State (business entity registration, commonly around $110).
  • Housing safety and occupancy standards (local inspectors typically verify smoke detectors, fire extinguishers, egress routes; additional measures may be required).
  • Insurance (hosts generally need STR‑specific liability coverage; homeowner policies often exclude STR activity).
  • Property inspections (some municipalities require pre‑permit inspections to verify compliance with building/fire codes, occupancy, parking, and health/safety standards).

5) Key Local Contacts

City of Marion (zoning, permits, and general administration)

• City of Marion (General): 843‑423‑2600
• Building Official: c/o Marion City Hall (see Marion city website for the current Building Official contact)
  • Website: marionsc.gov
  • Use the city site to locate the Building Official page and current contacts.
• Planning Commission/Board of Zoning Appeals: See Article X of the Zoning Ordinance for procedures and public hearing processes.

Marion County (business license and local taxes)

• Marion County Auditor/ Treasurer or local tax office (for local accommodations/hospitality tax questions)
  • Verify county administration of local lodging taxes and any business license requirements beyond the city.
  • Check the Marion County official website for current contacts.

South Carolina Department of Revenue (state tax registrations)

• Phone: 803‑898‑5000
• Website: dor.sc.gov
• Key registrations: retail license (if required), sales tax, and accommodations/lodging tax.

Note on missing contacts

• The provided materials do not include a specific Marion “Business License” phone/email or a named Building Official contact. Confirm the current Business License contact and any local lodging tax administrators via the City of Marion website or by calling City Hall.

6) Practical Zoning Quick‑Check (Table I Highlights)

• Hotels & Motels (NAICS 72111): Allowed (“P”) in Limited Commercial (LC), Core Commercial (CC), and General Commercial (GC). Not permitted in residential districts.
• Bed & Breakfast Inns (NAICS 721191): Conditional (“C”) in R‑12, R‑9, R‑6, RMH, OR, and LC. Not listed or not permitted in GR, CC, GC for B&B under Table I as excerpted.
• Camps & RV Parks (NAICS 72121): Conditional (“C”) in certain districts; not generally applicable to urban STR conversions.
• Rooming & Boarding Houses/Group Housing (NAICS 72131): Conditional (“C”) in select contexts.

Action item: Confirm your property’s zoning district and the specific “P/C/N” status for NAICS 721 lodging uses in Table I before proceeding.