Avalara MyLodgeTax > Blog > State and Local News > Hilton Head Island approves new fines for short-term rentals breaking rules

Hilton Head Island approves new fines for short-term rentals breaking rules

  • Jun 24, 2025 | Jennifer Sokolowsky

Hilton Head Island, South Carolina, has approved new fines for violations of the town’s short-term rental (STR) rules. Previously, the town could only issue criminal citations for code violations — an expensive and cumbersome process, particularly since many STR owners live out of town. The new fine structure implements escalating penalties for repeat violations of STR regulations:

  • First offense: $250
  • Second offense: $500
  • All subsequent offenses: $1,000

The fine schedule resets after a 12-month period with no violations, and a $25 late fee applies to unpaid fines after 30 days. Operators must pay all outstanding fines before renewing their operating permits. Properties that accumulate three or more citations within a 12-month period can have their license revoked.

The town has also created a fine schedule for parking violations and is looking into using fines as a tool for enforcement of garbage rules.

Current rules for short-term rentals

In 2023, Hilton Head approved its STR ordinance, which applies to privately owned residential property used as vacation homes and STRs for a rental period of less than 30 days.

Operators must obtain a permit from the town and comply with operational requirements. They must be available by telephone 24 hours a day, seven days a week, and respond to complaints on-site within an hour. Operators must also follow rules regarding parking, sanitation, noise, and safety. Contact information must be prominently displayed within rental properties.

Hilton Head Island has approximately 6,600 active short-term rentals. In 2024, STRs generated 128 noise complaints, 100 parking complaints, and 34 trash complaints.

Lodging taxes also apply

STR operators on Hilton Head Island must also collect lodging taxes from their guests.

On rentals of less than 90 days, operators are required to collect the town’s Accommodations Tax and Beach Preservation Fee, which fund tourism-related infrastructure and services as well as beach renourishment and related facilities. Operators must open an account with the town’s Revenue Services Office and file lodging tax returns quarterly. On Hilton Head, Airbnb collects the local tax automatically when guests pay for its listings, but Vrbo doesn’t collect the local tax on its listings.

South Carolina STRs are also subject to state and local sales and lodging taxes, which are administered by the state. Operators are required to register with state tax authorities, collect lodging taxes from guests, and remit the tax.

A few exceptions apply.

  • You’re not required to collect accommodations tax if you rent out a unit for less than 15 days during the taxable year, or if you use the dwelling unit as a residence (for personal purposes) 14 days or more during the taxable year. You’re also not required to collect lodging taxes if you rent out six bedrooms or less in a home that you own and in which you live, provided you don’t use an STR marketplace for guest transactions.
  • If you provide short-term accommodations for less than one week in any calendar quarter, you don’t need to register with the state, but you still need to collect and pay lodging tax.
  • If you rent your property exclusively through a short-term rental marketplace such as Airbnb or Vrbo that reserves rooms and accepts payments for booking, you’re not required to register with the state or collect short-term rental taxes. Both Airbnb and Vrbo collect state lodging taxes for their listings.

If taxes aren’t being collected for you, such as when guests book directly with you rather than through a marketplace, you’re responsible for collecting and remitting lodging taxes.

Get help with South Carolina lodging taxes

Avalara MyLodgeTax can help vacation rental hosts automate and simplify lodging tax compliance. For more on vacation rental lodging taxes in South Carolina, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.


Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Jennifer Sokolowsky
Avalara Author Jennifer Sokolowsky
Jennifer Sokolowsky writes about tax, legal, and tech topics. She has an extensive international background in journalism and marketing, including work with The Seattle Times, The Prague Post, Avvo, and Marriott.
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Learn more about SC lodging tax rules