Overview (explicitness on legality)

• Yes: Short-term rentals are allowed in Walhalla, SC, but strictly under the city’s zoning regulations as a conditional use.
• Ordinance 2023-07 amended Walhalla’s Zoning Chapter to allow STRs in the R-25 Single-Family Residential zoning district subject to detailed conditions and approvals. The ordinance was adopted in 2023 and enforcement began January 1, 2024.
• STRs are defined as rentals for less than 45 consecutive days and must meet occupancy, safety, parking, and operational standards.
• Investors must obtain city zoning approval (Zoning Permit) and a city business license, pass a fire/life-safety inspection, and comply with tax and posting requirements.

How to Start an STR in Walhalla: Step-by-step

1. Confirm zoning eligibility

   • STRs are a conditional use in the R-25 Single-Family Residential zoning district.
   • Only detached single-family dwellings and accessory dwellings are eligible. Manufactured homes are not eligible for STR use.
   • If your property lies in any non-R-25 zoning district, an STR is not permitted under this ordinance.
   • Note: For properties within an HOA, written confirmation from the HOA president that STRs are permitted is required.

2. Prepare required documentation for city approval

   • Zoning Permit application (city form).
   • Site plan showing compliance with applicable setback/parking requirements and escape routes.
   • Property management plan that identifies a Short-Term Rental Agent.
     • If the owner does not live on-site: Owner/Agent must be capable of being physically present on-site after notification of an emergency or issue requiring presence by a City Department Head.
     • If owner lives on-site: A backup STR Agent must be identified unless the owner certifies the unit will not be rented when the owner is out of town.
   • Fire alarm monitoring contract, if applicable.
   • Copy of the rental agreement and house rules (see specific content requirements in Required Documents).
   • Proof that zoning and fire/life safety standards will be met (e.g., detectors, extinguishers, escape routes, pool/tub disclosures).

3. Submit application and fees; schedule inspection

   • Submit the Zoning Permit application, the above documents, and pay the Zoning Permit fee.
   • Pay the business license fee (set annually by City Council in the Budget Ordinance).
   • Schedule and complete a Fire Marshal inspection; approval must be obtained before issuance.
   • Ensure no outstanding municipal citations exist at the property.

4. Obtain the city business license (Short-Term Rental)

   • Required before operating.
   • Business license renewal is annual; fees are set by the city.
   • Keep the business license current at all times.

5. Comply with state and county tax obligations

   • Register and remit the 2% state accommodations tax and the 5% sales tax (with any applicable local option sales tax components) to the South Carolina Department of Revenue (SCDOR).
   • Register and remit the Oconee County local accommodations tax (LAT) at 3% for unincorporated Oconee properties or 1.5% if located inside a municipality that also collects accommodations tax. Walhalla collects a local accommodations tax; remit to Oconee County using the HostCompliance portal.
   • Note: South Carolina’s state-level accommodations tax is 2%; county and municipal local accommodations taxes apply in addition.
   • Submit LAT returns monthly by the 20th of each month for the prior month (local practice). Align state sales/accommodations tax remittance with SCDOR filing cadence.

6. Prepare the property and begin operations

   • Install/maintain required safety devices and post all required information inside the unit (see Required Documents).
   • Delineate on-site parking to meet city standards and specify permitted vehicle counts in the guest agreement.
   • Implement trash storage and pickup policies and provide written instructions to guests.
   • Enforce occupancy limits and minimum/maximum stay rules in listings and guest agreements.
   • Include STR contact information in all advertisements and within the unit.

7. Ongoing compliance and renewal

   • Annual renewal of the city Zoning Permit/STR approval and business license.
   • Notify the city of any changes to owner/agent contact information.
   • Maintain compliance with posted quiet hours (10:00 PM–7:00 AM), no large gatherings unless approved, and no on-site signage.
   • Respond promptly to guest complaints and city inquiries.

Required Documents, Permits, Licenses, and Guidelines

• City Zoning Permit (per property, non-transferable)
  • Requires: application form, site plan, property management plan, rental agreement/house rules, fire alarm monitoring contract (if applicable), fee payment, and no outstanding municipal citations.
• City Business License (STR-specific)
  • Fee set annually by City Council; required prior to operating and renewed annually.
• Rental agreement and house rules (content must include)
  • Minimum and maximum stay.
  • Maximum number of guests: 12 for primary house rentals; 4 for accessory dwelling rentals; children under 2 are exempt.
  • Maximum vehicles permitted: 1 per bedroom for primary house rentals, max 6; 2 for accessory dwelling rentals; specify on-site parking only (no street parking).
  • Quiet hours (10:00 PM–7:00 AM) and noise ordinance application.
  • Prohibition on large gatherings (e.g., weddings, reunions) unless specifically approved by the City.
  • Pet rules (pets cannot be left outside unattended; must comply with the City’s Animal Code).
  • Trash disposal instructions (pickup times) and emergency contact information, including the police non-emergency number, posted conspicuously in the unit.
• Property management plan
  • Identify the STR Agent; specify on-call availability and on-site response capability when required.
  • Note management changes to the Zoning Administrator; non-compliance can result in suspension.
• Fire/life safety compliance
  • Fire Marshal inspection and approval required prior to STR approval issuance.
  • Maintain operable smoke and carbon monoxide detectors; maintain at least one fully charged fire extinguisher; maintain unobstructed escape routes; disclose swimming pools/hot tubs and related safety equipment to guests in writing.
• Insurance
  • While not explicitly detailed in the ordinance, a comprehensive STR insurance policy covering property damage and liability is strongly advised as a risk-control measure.
• Additional verifications
  • HOA confirmation letter (if applicable) confirming STRs are permitted.
  • Ensure no outstanding municipal code citations related to the property.

Specific Regulations (City of Walhalla)

• Zoning: STRs are permitted as a conditional use in the R-25 district for detached single-family dwellings and accessory dwellings; manufactured homes are excluded.
• Occupancy: Maximum of 12 guests; children under 2 are exempt.
• Stay length: Rentals are limited to a maximum of 45 consecutive days.
• Permits and licensing
  • Zoning Permit (per property) and city business license are required before operating.
  • Approvals are non-transferable and valid only for the specific property in the permit.
• Management and availability
  • Owner/STR Agent must be available during rental periods to respond to complaints; must be reachable by phone at all times and capable of being physically present on-site when notified by a City Department Head for emergencies or issues requiring presence.
  • If the owner is not on-site, on-call capability is required; owner on-site requires a backup agent unless the owner certifies the unit will not be rented when away.
• Safety and life safety
  • Fire Marshal inspection and approval required; smoke and CO detectors, fire extinguisher, unobstructed escape routes required.
  • Written disclosure required for any swimming pool or hot tub and related safety equipment.
• Parking
  • On-site parking only; located to the side or rear (except existing front driveways). Parking spaces must be at least 9’ x 18’ and improved with an impermeable or semi-impermeable surface (pavement, gravel, etc.).
  • Vehicle limits: 1 per bedroom (max 6) for primary house; 2 for accessory dwelling.
  • No off-site parking (including adjacent rights-of-way).
• Trash management
  • Provide a designated, screened/fenced trash storage area; display trash instructions and pickup times; keep containers secured; set out no more than 24 hours before pickup; remove within 24 hours after pickup.
• Operational requirements
  • No on-site signage permitted.
  • STRs must reflect and blend with neighborhood character; property must be properly maintained and regularly inspected by owner/agent.
  • Quiet hours: 10:00 PM–7:00 AM; prohibit large gatherings unless approved by the City.
  • Advertising must include STR contact information and any other required disclosures (the ordinance requires the responsible party’s contact information to be prominently displayed in the unit).
• Violations and enforcement
  • Violations include operating without approval, advertising without approval, or failing to comply with any ordinance requirement.
  • Suspension or revocation grounds include improper issuance, fraud, noncompliance, tax delinquency, nuisance declared by the Chief of Police, or more than two municipal code convictions within a 12-month period related to the STR.
  • Operating without approval doubles the application fee (minimum $1,000) and may bar new approvals for two years if the owner does not submit an application within 60 days of notice.
• HOA and other laws
  • STRs must also comply with applicable HOA covenants and all other city, county, state, and federal laws; nothing in the ordinance waives other requirements.

County-Level Regulations (Oconee County)

• Local Accommodations Tax (LAT)
  • Rate: 3% for properties located in unincorporated Oconee County; 1.5% for properties located inside a municipality that also collects accommodations tax (such as Walhalla). Remit LAT to Oconee County.
  • Registration and monthly remittance are required via the county’s HostCompliance online portal. Payment is due by the 20th of each month for the prior month.
  • Filing: Use the county’s LAT Remittance Form; maintain records. Registration in the county portal is required.

State-Level Regulations (South Carolina)

• State Accommodations Tax: 2% on gross accommodations proceeds; remitted to SCDOR along with the 5% state sales tax and any applicable local option sales tax components.
• Registration: Obtain a SCDOR account for sales and accommodations tax collection and remittance.
• Deductions and credits: Eligible business expenses (e.g., depreciation, property taxes, insurance, repairs, utilities, cleaning, management, professional services, travel) can reduce taxable income; consult a tax professional.
• Definition for state reporting: STRs are accommodations furnished for less than 90 consecutive days (state-level context), but Walhalla’s local rule caps stays at 45 days.
• Local taxes: Municipalities (including Walhalla) may levy a local accommodations tax. The city’s 2023–2024 ordinance implies Walhalla has a local ATAX; the specific local rate was not specified in the provided documents.

Tax Rates Summary

• State: 5% sales tax + 2% state accommodations tax (plus any local option sales tax components) → remitted to SCDOR.
• County LAT: 3% (unincorporated) or 1.5% (inside a municipality that collects ATAX) → remitted to Oconee County via HostCompliance.
• City (Walhalla) local accommodations tax: Implemented by the city; specific rate not provided in the sources—verify with the City of Walhalla.

Contact Information (Walhalla and Oconee County)

• City of Walhalla, Community Development (Zoning/STR)
  • Phone: (864) 638-4343
  • Address: 206 N Church St, P.O. Box 1099, Walhalla, SC 29691
  • Website: www.cityofwalhalla.com
• City of Walhalla (general)
  • Fax: (864) 638-4357
• Oconee County, Pay Taxes / Accommodations Tax
  • Phone: (864) 638-4162
  • Email: (email address protected; viewable via Oconee County website)
  • Address: 415 S. Pine St, Walhalla, SC 29691
  • HostCompliance Portal: safe.hostcompliance.com/oconee-county-sc/permit-registration/welcome
• Oconee County, Building Codes (fire/life safety and inspection questions)
  • Phone: (864) 718-1005
• Other Oconee County contacts (for convenience)
  • Tax Notices: (864) 638-4158
  • Real Estate: (864) 638-4150
  • Court House: (864) 638-4280
  • Other Inquiries: (864) 638-4158

Important Compliance Links and Documents

• City of Walhalla, Zoning Ordinance (2021; current amended version): www.cityofwalhalla.com/wp-content/uploads/2021-zoning-ordinance-with-amendments-attached.pdf
• City of Walhalla, Short-Term Rental Ordinance 2023-07 (June 12, 2023 Planning Commission agenda and ordinance text): www.cityofwalhalla.com/wp-content/uploads/june-12-2023_pc-agenda.pdf
• Oconee County Accommodations Tax information (registration, rates, facts, forms): oconeesc.com/pay-taxes-home/accommodations-tax
• Oconee County Online Accommodations Tax Portal (registration and monthly filing): safe.hostcompliance.com/oconee-county-sc/permit-registration/welcome
• Oconee County LAT Fact Sheet (PDF): oconeesc.com/documents/pay-taxes/accommodations