S.C. real estate mogul uses political connections to benefit company, hurt small property owners
Rick Elliott of Elliott Beach Rentals has donated tens of thousands of dollars to key political campaigns and paid $180K to lobbyist son of Finance Chairman Peeler
COLUMBIA, S.C. – A Grand Strand realty company owned by a man supporting a bill that would change how short-term rental owners list and market properties has paid the son of an influential lawmaker at least $180,000 in recent years to lobby on its behalf.
Rick Elliott of Elliott Beach Rentals in Myrtle Beach has been a vocal supporter of House Bill 3876, which could mean hundreds of millions in lost taxes to the state as well as force thousands of these short-term rental owners out of the rental business.
Elliott and his company also have donated more than $33,000 in campaign funds to several other key South Carolina lawmakers in recent years.
House Bill 3876 only would recognize professional property management companies with licensed real estate brokers-in-charge, effectively mandating use of large incumbent companies over small business property managers.
Critics say this could force many small hosts who market properties on Airbnb, Vrbo and similar booking platforms out of the market entirely due to compliance burdens they aren’t equipped to handle.
Opponents also warn the bill could jeopardize tax collection, noting that property owners who used Airbnb paid $388 million in South Carolina taxes since 2020, according to NetChoice. They also cite numbers from a South Carolina Realtors report that shows the $4.2 billion annual impact of short-term rentals in South Carolina, including more than 50,000 jobs, more than $1.4 billion in labor income and more than $1.8 billion in revenue for property owners in the state.
HB 3876 was introduced by Rep. Lee Hewitt (R-Murrells Inlet). He is a coastal realtor and property manager who has made tourism, coastal development and real‑estate issues central to his political profile. He owns and is the broker-in-charge of Garden City Realty and stands to increase his personal real estate business should his bill become law.
The bill passed the House on a 66-38 vote. The legislation still is pending in the state Senate.
Elliott lives in Hewitt’s district. According to South Carolina State Ethics Commission filings, Elliott Realty has paid lobbyist Boone Peeler at least $180,000 since 2023 to work in Columbia on its behalf. Peeler is the son of Finance Chairman Harvey S. Peeler Jr.
South Carolina ethics laws do not bar a child from lobbying a parent as long as they don’t live under the same roof.
Elliott’s company website has a page set up for homeowners to email lawmakers in support of HB 3876. On the page, Elliott Beach Rentals notes it is the property manager for its homeowners. The page also claims the bill does not impact homeowners.
Critics say HB 3876 could force many small hosts who market properties on Airbnb, Vrbo and similar booking platforms out of the market entirely due to compliance burdens they aren’t equipped to handle. Opponents also warn the bill could jeopardize tax collection, noting that property owners who used Airbnb paid $388 million in South Carolina taxes since 2020.
NetChoice, a trade association representing leading internet businesses committed to free expression and free enterprise online, says half of those state and local taxes are at risk if HB 3876 passes because it would prohibit small property management businesses from using Airbnb’s platform for secure payment processing and tax collection.
And, if every property management company is forced into using its own costly system, the risk of tax leakage and non-compliance will skyrocket.
As of 2023, 80% of Airbnb hosts in South Carolina have only one whole-home listing, and 56% reported that renting out their home has helped them cover rising costs of living. Opponents say HB 3876 would make it difficult for these listers to comply with the demands of the bill.
According to Airbnb’s 2025 Economic Impact Report, that platform helped generate about $2.1 billion in economic activity, helped support an estimated 30,000 jobs and drive about $565 million in total tax revenue in South Carolina in 2024. That $2.1 billion is roughly half of the economic impact created by the short-term rental mark in South Carolina in 2022.
About 25,000 property owners either could lose or have their ability curtailed to use their property for supplemental income should HB 3876 become law.
Critics say the bill would undermine property rights by preventing rental hosts from listing on platforms such as Airbnb and Vrbo if they hire property managers.
HB3876 focuses on tax collection and compliance for short-term rental accommodations. It amends South Carolina tax code to specify which parties are responsible for collecting and remitting taxes and fees on accommodations.
The bill effectively would prohibit small property managers from listing their clients’ homes on these online booking platforms. For example, more than half of all homes listed on Airbnb in South Carolina are managed by a property manager.
If this bill passes, these booking platforms will no longer be able to allow those homeowners to list their homes. Only homeowners who self-manage their property could continue using the online platforms.
The controversy over the bill stems from one provision that prohibits short-term rental owners who use property management companies from also using digital platforms such as Airbnb and Vrbo for tax collection. Instead, property managers would be required to handle tax responsibilities.
Proponents say the bill would make sure taxes are collected and property owners don’t get in trouble later for not paying what they owe.
Critics, however, say it would create an impossible choice for small hosts between using property management services and online platforms.
A commentary on reason.org says HB 3876 would hurt small short-term renters.
“South Carolina localities have a history of hostility toward short-term rentals (STRs), and the latest statewide effort is found in House Bill 3876,” the commentary states. “This bill would impose significant restrictions against both local STR providers and the digital platforms that support them.
“HB 3876 would establish arbitrary limits on short-term rental providers, undermining property rights and distorting the STR market in favor of large providers capable of absorbing the additional costs this legislation imposes.”
Over the years, campaign finance reports show Hewitt has received donations from Elliott ($4,000), the Myrtle Beach Lodging PAC which is part of the Grand Strand Business Alliance ($4,000) and from innkeeper Brian Henry ($1,500).
Some co-sponsors of the bill also have received campaign donations from similar individuals, businesses and PACs.
Rep. William Bailey (R-Little River) has received campaign donations from Elliott and Elliott Realty ($6,000), Myrtle Beach Lodging PAC ($1,000), hotelier William McGonigal ($1,000), hospitality owner Bill Griste ($1,000), Grand Strand Resort Vacations ($850) and the South Carolina Restaurant & Lodging Association PAC ($500).
Roger Kirby (D-Lake City) has received campaign donations from the Myrtle Beach Lodging PAC ($3,750) and Elliott ($1,000).
Kevin Hardee (R-Loris) has received campaign donations from Myrtle Beach Lodging PAC ($6,000), Elliott ($4,750), Island Resort Co. ($500) and Vista Hotel Partners ($250).
Jackie Hayes (D-Dillon) has received campaign donations from Elliott ($6,000) and Myrtle Beach Lodging PAC ($4,500).
Gilda Cobb-Hunter (D-Orangeburg) has received campaign donations from Myrtle Beach Lodging PAC ($4,500) and Elliott ($1,000).
J. Todd Rutherford (D-Columbia) has received campaign donations from Myrtle Beach Lodging PAC ($2,500) and Elliott ($2,000).
Lucas Atkinson (D-Marion) has received campaign donations from Myrtle Beach Lodging PAC ($4,000), Elliott ($3,500), William Carroll rental properties ($500) and P&R Rental Properties ($500).
In addition, campaign finance records show Harvey Peeler has received $2,000 in donations form Myrtle Beach Lodging PAC. State Senate President Thomas Alexander (R-Walhalla) has received $2,250 from the Myrtle Beach Lodging PAC and $1,000 from the South Carolina Restaurant & Lodging Association.
Senate Judiciary Chairman Luke Rankin (R-Conway) has received $4,300 from Elliott and Elliott Realty, $4,000 from Myrtle Beach Lodging PAC and $1,500 from the South Carolina Restaurant & Lodging Association.
House Speaker G. Murrell Smith (R-Sumter) has received $4,250 from Myrtle Beach Lodging PAC, $1,000 from Elliott and $1,000 from the South Carolina Restaurant & Lodging Association.
House Ways and Means Chairman Bruce Bannister (R-Greenville) has received $5,500 from Myrtle Beach Lodging PAC and $500 from the South Carolina Restaurant & Lodging Association.