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Time of India
24-06-2025
- Business
- Time of India
Shake it off? Not anymore — Rhode Island floats Taylor Swift Tax on fancy homes sitting pretty and empty
Rhode Island wants to add a new tax to super expensive homes that are often empty and people are calling it the 'Taylor Swift tax' because the pop star owns one of those big vacation houses in the state. This new tax would mostly affect rich people with second homes worth over $1 million. Rhode Island shared its new state budget plans this week. One of the budget ideas is being called the 'Taylor Swift tax' by people online and in the news. According to NBC 10 News, this tax would apply to second or vacation homes valued at over $1 million. Tax is only for homes that stay empty It would only apply if the home is empty for more than half the year. If approved, owners would pay an extra $2.50 for every $500 of the home's value above $1 million. For example, if a vacation home costs $2.5 million and it sits empty, the owner could owe an extra $7,500 a year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 10 Most Beautiful Women In The World OMGIFacts Undo Taylor Swift's Watch Hill home in Rhode Island is valued at $17.75 million, so if the rule takes effect, she could end up paying about $136,000 more in taxes each year. Swift bought the house in 2013 and it has 7 bedrooms, 9 bathrooms, and is three floors tall, as per the report by NBC 10 News. The mansion is famous, Swift even had celebrity Fourth of July parties there, and it inspired her song 'The Last Great American Dynasty' from her Folklore album. The Rhode Island Association of Realtors is not happy with the proposal. Live Events Realtors say the plan is bad for buyers The group's president, Chris Whitten, said this plan could make the housing market worse and more expensive. He said, 'Please, don't take from our housing market at the moment to balance the budget for other items, it's going to be detrimental.' Another budget proposal would raise the seller's closing fee, called the conveyance tax, according to NBC 10 News. This fee would increase from $2.30 to $3.75 per $500 of the sale price, a 63% rise. For instance, on an average Rhode Island home priced around $492,939, the fee would jump from about $2,200 to $3,700. Both taxes are meant to help the state make more money, but some people think it will hurt regular home buyers and sellers, not just the rich, as per reports. FAQs Q1. What is the Taylor Swift tax in Rhode Island? It's a proposed tax on second homes worth over $1 million that stay empty for more than half the year. Q2. Why is it called the Taylor Swift tax? Because Taylor Swift owns a $17.75 million vacation home in Rhode Island that could be affected by this tax.
Newsweek
24-06-2025
- Business
- Newsweek
Rhode Island Considers 'Taylor Swift Tax'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. A new bill that would introduce higher taxes on luxury second homes in Rhode Island, nicknamed the "Taylor Swift Tax" after the Pennsylvania-born superstar, is causing quite a stir. If enacted, the proposal would impose an additional charge on owners of luxury homes worth more than $1 million in Rhode Island who do not use them as their primary residences, including Swift, who owns the most expensive home in the state—the High Watch estate. The singer-songwriter purchased the property in Watch Hill, a historic district in Westerly—which has a total of seven bedrooms and nine bathrooms—back in 2013 for $17.75 million. Since then, she has hosted high-profile, star-studded Independence Day parties in the colonial-style historic mansion, which inspired the song "The Last Great American Dynasty," included in Swift's 2020 Folklore album. Newsweek contacted the Rhode Island Association of Realtors and Taylor Swift's publicist for comment by email on Tuesday. What To Know About The 'Taylor Swift Tax' Under the budget proposal—officially called the non-owner-occupied tax—owners of homes worth more than $1 million in Rhode Island that sit empty for over half of the year (more than 183 days) would pay an annual fee of $2.50 for every $500 of the home's value above $1 million. That means that Swift, who owns seven homes across the country including in New York City, Beverly Hills and Nashville, would have to pay an additional $136,000 a year in taxes should this proposal be approved. Homes worth more than $1 million which are rented out for most of the year would not be subject to the surcharge. Luxury homes in Watch Hill, Rhode Island. Luxury homes in Watch Hill, Rhode Island. Getty Images data shows that the proposal would have a relatively big impact on the Rhode Island housing market. Listings for homes worth more than $1 million have more than doubled in the Ocean State over the past six years, going from 10.7 percent of all homes for sale in 2019 to 22.3 percent in mid-2025. Between January and May, about one in five homes on the market in Rhode Island were priced above $1 million. Investment in second homes has also increased over the past decade in the Ocean State: according to just 3.76 percent of home loans in Rhode Island were issued for second homes, while investment property purchases accounted for 4.1 percent of all loans. In 2021, 5.25 percent of home loans in the state were issued for second homes, while in 2024 8.1 percent were issued for investment properties. Why Lawmakers Say The Bill Is Needed—And Why Real Estate Experts Are Skeptical While the bill's supporters say that the measure will help increase housing affordability in the state, which has dropped dramatically in the years following the pandemic, critics say the move would discourage high-end vacation homebuyers and potentially have a chilling effect on the local market. "Please, don't take from our housing market at the moment to balance the budget for other items, it's going to be detrimental," Chris Whitten, president of the Rhode Island Association of Realtors, said in comments shared with NBC 10 News. According to Hannah Jones, senior economist at the "Taylor Swift Tax" could have "a variety of impacts," on the Rhode Island market. "High net worth households may just pay the tax, while other longtime owners may consider short-term leasing of their property to get around the higher tax assessment," she said in a recent press release. "It is possible that some owners would sell, but others may exhaust other options before letting go of their high-dollar real estate." Watch Hill realtor Larry Burns told the Daily Mail that the so-called tax "is going to discourage people from buying second homes [in Rhode Island] because of the added expense" and harm tourism to the state. "There's people like Taylor Swift—people will look at her and think, 'Well, she has so much money she'll never even notice an increase like this.' But it's not like the residents here have inexhaustible resources," Burns said. "$100,000 here might be college education for the year for a kid, or two kids." The proposal would also hurt "older folks or multigenerational properties where the siblings have inherited the property," Burns said. "If you keep adding expenses people end up selling because they can't keep up with the cost." Another Proposal Affecting Rhode Island Homeowners Rhode Island lawmakers are also considering increasing the conveyance tax—a fee paid by sellers during home sales. The proposal would raise the rate from $2.30 to $3.75 per $500 of sale price, a 63 percent hike. Using Zillow's current median home price in Rhode Island of about $492,939, the typical conveyance tax payment would rise from $2,200 to approximately $3,700, according to WFLA calculations. Lawmakers supporting the bill said that the money raised by the two proposals would go into funding affordable housing projects in Rhode Island. But several industry insiders and experts have voiced their opposition: the Rhode Island Association of Realtors has argued against both proposals, saying that they will have a detrimental impact on the local market, chilling demand and further tightening inventory in the state. What Happens Next The "Taylor Swift Tax" was greenlit as part of the proposed $13.9 billion state budget by the Rhode Island House of Representatives on June 18 with a 66 to 9 vote, and is now with the Senate. A final vote on the budget is expected by this summer. If approved and signed into law by the state's governor, the new taxes could take effect as early as July 2026.
The Hill
23-06-2025
- Business
- The Hill
‘Taylor Swift tax' proposed in Rhode Island
(NewsNation) — Rhode Island officials have shared their latest budget proposals, with one being unofficially referred to as a 'Taylor Swift tax' on second or seasonal homes. The Rhode Island Association of Realtors has raised concerns that the proposed changes, which would also reportedly increase a seller's fee by 63 percent overall, would hit both home sellers and buyers, potentially making the market more unaffordable. The association's president, Chris Whitten, told NBC 10 News, 'Please, don't take from our housing market at the moment to balance the budget for other items, it's going to be detrimental.' The budget proposals are specifically targeting the high-end vacation homes. The unofficially named 'Taylor Swift tax' would put a new surcharge on second homes that are worth over $1 million. If this proposal is approved, it would add an additional fee for owners of nonprimary residences that are empty for over half the year. That annual fee would be $2.50 for every $500 of value that is above the $1 million mark. So, a home that is $2.5 million and sits empty for over half the year could have an extra $7,500 in taxes each year. For Swift's Watch Hill estate, she could owe an additional $136,000 a year in taxes. Swift purchased that estate, which is three floors with seven bedrooms and nine bathrooms, in 2013 for $17.75 million. She has been known to have celebrities over for parties, including her Fourth of July parties. Called the Westerly Mansion, the home built in 1904 was also the inspiration for one of the songs on Swift's 2020 'Folklore' album, 'The Last Great American Dynasty.' The other proposal would affect what sellers have to pay during closing. The conveyance tax would go from $2.30 to $3.75 for every $500, which would be a 63 percent increase. According to Zillow, the average selling price of a home in Rhode Island is around $492,939. With the new rate, the tax would go from $2,200 to $3,700.
Yahoo
13-06-2025
- Business
- Yahoo
Real estate pushback to the 'Taylor Swift tax' begins. Will the charge hit everyday cottages?
Star entertainer Taylor Swift would owe Rhode Island around $136,000 in new taxes on her Watch Hill mansion if a new charge to high-end vacation homes proposed in the House version of the state budget passes. And Rhode Island real estate professionals, who successfully defeated a similar tax plan a decade ago, are mobilizing to kill the tax hike again and argue that even if Swift can afford it, she and others in her position shouldn't have to pay. "We're screaming from the top of Jerimoth Hill. ... Do not hurt our housing market right here more than you are," Chris Whitten, president of the Rhode Island Association of Realtors, told The Providence Journal in a June 12 phone interview. "Because who knows what the slippery slope leads to? Let's heal. How about we heal our housing crisis we have here in Rhode Island, which is the worst in the nation by many of the stats that we see." The "Taylor Swift tax," if it passes, would apply to second (or third or fourth) homes with assessed values of more than $1 million, and its proceeds would fund the state's low-income tax credits that help finance affordable housing developments. How much it will raise is murky. Because the tax wouldn't go into effect until July 2026, House budget writers did not have to estimate its financial impact on the 12 months starting this July 1. But real estate brokers and agents, who are even more ticked off about a proposed 61% increase in the conveyance tax on home sales, say soaring property values means the tax on expensive properties will hit more than just pop stars. "Think about that family that has had this Narragansett Beach house in their family for four generations, and the family collectively uses it various weeks throughout the summer, and in the winter it just stays vacant," Whitten said. "They're going to be whacked with this." The Taylor Swift tax, officially called the "non-owner-occupied tax," applies to all residential properties assessed at more than $1 million that do not serve as a primary dwelling. To qualify as a primary residence, an owner has to live there more than half the year, or 183 days. The non-owner-occupied tax rate of $2.50 cents per $500 of value only applies to assessed value above $1 million, so even homes worth exactly $1 million would pay nothing. Properties that are rented − either in traditional long-term leases or short-term through online platforms − would be exempt from the tax as long as, again, they are occupied at least 183 days a year. Beyond the revenue benefit of the tax, House supporters of it point out the potential added benefit of creating an incentive for property owners to make more productive use of their luxury pads. Swift could avoid the tax if, instead of spending a few summer weekends here, she becomes a bona fide 183-day-per-year Rhode Islander. Alternatively, she could rent out the 1904-built, seven-bed, nine-bath estate during the cold winter months. Either option would likely pump some welcome economic activity into Watch Hill during the offseason when the enclave can resemble a ghost town. "You'll have to ask her," House Speaker K. Joseph Shekarchi said June 12 when asked if he hoped the tax would encourage Swift to move here full time. "I welcome any and all people who spend more time around Rhode Island. It's a beautiful state, and I love it dearly." Since then-Gov. Gina Raimondo first proposed a tax on luxury vacation "cottages" shortly after her inauguration in 2015, the politics around investment properties, out-of-state buyers and waterfront homes that sit vacant most of the year had not reached the boiling point where it is now. In the last decade, local governments have passed all kinds of ordinances restricting short-term rentals and lawmakers have considered numerous measures to encourage full-time owner-occupants but have largely maintained the status quo. A preamble to the new tax in the budget rails against absentee property owners, calls owning a property you don't live in a "privilege" and suggests that more moves to push homes into year-round occupancy could be ahead. "Non-owner occupied properties sometimes place a greater demand on essential state, city or town services such as police and fire protection than do occupied properties comparably assessed," the budget article says. "The residents of non-owner occupied properties are not vested with a motive to maintain such properties." And, it goes on, "some properties are deliberately left vacant by their owners in the hope that real estate values will increase, thereby enabling the owners to sell these properties at a substantial profit without making any of the necessary repairs or improvements to the property." Is some of that criticism of the high-end market fair? Whitten: "It's tough when people try to paint a broad picture, and it's a much more intricate situation. Just like landlord tenants, everybody's fighting at the State House, but we as Realtors are in the middle on that. We see both sides." The tax rate in Raimondo's 2015 Taylor Swift tax proposal was half that of the current plan, at $2.50 per every $1,000 of value instead of $2.50 per $500 of value. It was estimated to generate $11.8 million in new revenue, but was not included in the House budget that year. This article originally appeared on The Providence Journal: Real estate pushback to RI's proposed 'Taylor Swift tax' begins
Yahoo
23-04-2025
- Business
- Yahoo
McKee to announce plan to add more housing in Rhode Island
PROVIDENCE, R.I. (WPRI) — Gov. Dan McKee is set to unveil his long-term plan to add more housing in Rhode Island on Wednesday. The state has dealt with a housing crisis for years, and 'Housing 2030' will be the first statewide housing plan since 2006. According to McKee's office, the draft plan lays out actionable strategies to increase production of affordable, accessible, and diverse housing options in the state. The plan puts out a long-term vision to address the state's housing challenges and meet the needs of communities. Earlier this year, the Rhode Island Department of Housing announced its goal to create 15,000 new housing units by 2030. Could RI create 15,000 new housing units by 2030? Data from the Rhode Island Association of Realtors showed a drop in home sales of 4% from March 2024 to 2025. The number of homes on the market rose 29.2% over the year, but the supply of homes remains low, therefore keeping prices high. The draft plan will be announced at 1:30 p.m. at the State House. Input from the community is encouraged and will play a role in shaping the final plan and the state's housing strategy moving forward. Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
