R
hode Island lawmakers are working on a budget that includes two significant changes to real estate taxes, one of which is dubbed the "Taylor Swift Tax." This tax targets semi-vacant mansions valued over $1 million and would require owners to pay an additional surcharge. The rate is $2.50 for every $500 of assessed value above the first million dollars.

    The tax aims to encourage owners to either live in their homes for at least 183 days or rent them out for most of the year, rather than leaving them empty. Taylor Swift, who owns a $17.75 million mansion in Watch Hill, would reportedly face an additional $136,000 in property taxes per year if she doesn't become a Rhode Island resident.

    The second change is a 63% increase in the conveyance tax, which means sellers will owe more when transferring ownership of their property. The revenue generated from these two taxes will be used to fund housing programs, including affordable housing options and low-income tax credits.

    Supporters argue that this new tax could generate revenue for lower-income housing initiatives. However, critics worry that it may deter wealthy buyers and reduce interest in Rhode Island's luxury real estate market. Others fear that the tax could eventually affect more than just high-end property owners if needed.

    The proposed budget is now in the hands of the Rhode Island Senate, which must approve the legislation for it to become law. If passed, the new taxes would take effect in July 2026.