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hode Island's housing market is already fragile, and new budget proposals could make it even more unaffordable. The Rhode Island Association of Realtors is warning that two proposed tax changes would hit buyers and sellers hard, making homes less accessible to those who need them most.

    The association's president, Chris Whitten, urges lawmakers not to use the housing market as a source of revenue for other budget items. Instead, they should focus on finding alternative solutions to balance the state's budget. Two proposed tax changes are causing concern: one would increase the conveyance tax by 63% across the board, and the other, dubbed the "Taylor Swift Tax," targets high-end vacation homes with a new surcharge.

    The "Taylor Swift Tax" would add an annual fee of $2.50 for every $500 of value above $1 million on second homes that sit empty for more than half the year. This could result in significant tax increases, even for owners who don't live in their properties full-time. For example, a $2.5 million lakefront cottage could face an extra $7,500 per year in taxes.

    The other proposal would raise the conveyance tax from $2.30 to $3.75 for every $500 of a home's sale price, affecting buyers and sellers alike. This increase could add thousands of dollars to the cost of buying or selling a home, making it even harder for people to afford housing in Rhode Island.

    Supporters argue that these new fees are necessary to address two major crises: a struggling health care system and an underperforming housing market. However, critics say they would only make things worse by driving up costs and reducing the availability of affordable homes.