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hode Island’s latest budget introduces a surcharge on second‑home owners whose properties exceed $1 million. The measure, aimed at preserving the character of coastal communities, has been nicknamed the “Taylor Swift tax” after the singer’s historic Westerly residence, Harkness House. While Swift herself has not commented, the additional tax would barely affect her lifestyle, and even less‑affluent millionaires can comfortably meet the requirement.

    Harkness House sits in Westerly, a town founded over 350 years ago that hosts roughly 23,000 residents. Its economy depends on a steady stream of full‑time workers and seasonal visitors. The town’s survival hinges on the tax revenue generated by both permanent residents and affluent homeowners who purchase vacation properties. The presence of wealthy buyers does not threaten the town’s existence; rather, it sustains the local retail, hospitality, and service sectors that keep the community vibrant.

    Similar tensions surface in the Mountain West’s ski resorts, where soaring housing costs have pushed long‑term rentals into vacation‑home markets. Service‑industry workers are forced to relocate far from their jobs or endure unstable housing. Some Republicans propose auctioning public lands for large‑scale housing developments, yet these projects often lack essential infrastructure such as water, sewer, and roads. Building workforce housing within resort boundaries would be far more practical and beneficial.

    Critics—especially real‑estate brokers—argue that taxing expensive second homes penalizes the very residents who contribute most to local spending. Their claims, however, are largely theoretical. High‑income buyers are drawn to these destinations precisely because of the amenities and lifestyle they offer, and their presence fuels the local economy. Without their spending, the service industry that supports year‑round employment would falter.

    Wealthy owners of vacation properties should contribute a fair share through surtaxes like Rhode Island’s or through progressive mansion taxes. The 2024 mansion‑tax report reviews 17 jurisdictions with such taxes, offering guidance on effective, equitable design. States are encouraged to join multistate compacts to curb tax avoidance and ensure that affluent homeowners pay their rightful portion, thereby safeguarding the long‑term viability of the communities they help sustain.