Rhode Island lawmakers are considering new legislation, informally dubbed the “Taylor Swift Tax,” aimed at imposing an additional property tax on non-primary residences valued at more than $1 million. The proposal targets owners of luxury second homes, a category that includes some high-profile property holders in exclusive coastal areas.
If enacted, the measure would establish a higher tax rate for such non-primary residences, potentially generating additional revenue that could be used for affordable housing or other public services. The bill does not specifically name any individuals, but its nickname stems from pop singer Taylor Swift, who owns a mansion in the coastal town of Watch Hill. Swift’s presence in the state has made her a symbolic figure in discussions about luxury real estate and its impact on local economies.
Supporters of the bill argue that Rhode Island’s high-end vacation properties contribute to rising property values and housing shortages, especially in beach communities. They contend that wealthier homeowners should contribute more to the state’s tax base, particularly if they do not live in the state year-round.
Critics of the legislation worry it could deter investment in Rhode Island’s real estate market and discourage wealthy individuals from maintaining properties in the state. They also question whether the tax would raise sufficient revenue to justify potential economic drawbacks.
The bill is currently under consideration in the state legislature, and it remains to be seen whether it will gain enough support to become law. If passed, Rhode Island would join a growing list of jurisdictions seeking to address housing inequities through targeted taxes on luxury properties.
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