Folly Beach, South Carolina

Folly Beach City Council voted 4-3 at a Sept. 22 special meeting to authorize its attorney to consent to moving a lawsuit over the island's short-term rental limits directly to the South Carolina Supreme Court, skipping the Court of Appeals. Plaintiffs Elizabeth Spratt Cooper and Park Lane Partners, LLC, requested the transfer on Sept. 18, arguing that because the rental limits were enacted via a 2023 citizen referendum, state rules give the Supreme Court exclusive jurisdiction over election-related appeals.

The underlying case stems from a 2024 lawsuit challenging the city's rental permit limits. In August, a Charleston County circuit judge ruled the city's rental registration fee an unlawful tax; Folly Beach has since eliminated the fee, though a class action over it has been proposed. The city is appealing the ruling. City Administrator Aaron Pope noted the transfer would speed up resolution and make the ruling final, but would eliminate further appeal options. The Supreme Court must still agree to hear the case, which it may do if the matter involves significant public interest or major legal principles.

Folly Beach City Council voted 5-1 to appeal an Aug. 14 circuit court ruling that struck down the city's cap on short-term rental permits and its revenue-based rental fee, both of which a judge found were adopted illegally under South Carolina law. Because the appeal is moving forward, the cap will no longer expire as originally scheduled.

Council also passed a moratorium, also by a 5-1 vote, pausing new short-term rental license approvals, with exceptions for medical hardship cases, inheritance situations, and owner-occupied rentals. The moratorium runs through Feb. 19, 2027, or until the city completes a planned study of short-term rental policy, whichever comes first; a request for proposals for that study was issued Aug. 18. Councilman Blair Holladay, who campaigned against rental restrictions, cast the lone dissenting vote on both measures. City leaders say the study will inform future decisions on whether and how to reinstate rental caps.