Rhode Island Proposes “Taylor Swift Tax” on Empty Luxury Homes
Rhode Island’s new budget proposal includes a controversial tax targeting luxurious second homes, sparking discussions online and earning the nickname “Taylor Swift tax.” The tax specifically targets properties valued at over $1 million that remain unoccupied for more than half the year.
If enacted, homeowners would face an additional charge of $2.50 for every $500 of home value exceeding $1 million. For instance, the owners of a $2.5 million vacation house could be liable for an extra $7,500 annually. Taylor Swift’s opulent Watch Hill residence, valued at approximately $17.75 million, could incur an estimated $136,000 increase in annual taxes if the proposal passes.
Local real estate professionals are concerned about the potential negative impact on the housing market. The Rhode Island Association of Realtors argues that such taxes could deter buyers and exacerbate existing affordability issues. Additionally, a related proposal would increase the seller’s closing fee, or conveyance tax, by 63%, further stressing the market.
While the state aims to enhance revenue through these measures, critics warn that the burden may ultimately fall on everyday buyers and sellers, not just the affluent.
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