The bill H. 3861 aims to amend the South Carolina Code of Laws by adding Section 6-1-195, which prohibits municipalities, counties, or other political subdivisions from enacting or enforcing any ordinances, resolutions, or regulations that restrict the rental of residential dwellings to short-term guests. The bill defines "residential dwelling," "short-term rental," and "short-term guest," providing clarity on the terms used.

Additionally, the bill establishes penalties for any governing body that violates this prohibition. Specifically, if a municipality or county enacts such a regulation, it will lose the ability to assess or collect the six percent property assessment ratio for qualifying real property and will have its State Aid to Subdivisions Act distribution withheld until the offending regulation is repealed. This legislation is designed to preempt any local laws that would limit short-term rentals, thereby promoting the rental market within the state. The act will take effect upon approval by the Governor.

Statutes affected:
01/30/2025: 6-1-195
Latest Version: 6-1-195