R
hode Island lawmakers are considering a proposal that could significantly increase taxes on luxury properties left unoccupied by their wealthy owners, including pop star Taylor Swift. The so-called "Taylor Swift Tax" would impose an annual fee on second homes valued over $1 million, with the goal of addressing housing affordability in the state.

    The legislation would charge a surcharge of $2.50 for every $500 above the first $1 million in assessed value, which could add up quickly for high-end homes in coastal towns like Westerly and Newport. For example, Swift's $17 million mansion in Watch Hill could be subject to an additional $136,000 in taxes each year.

    The proposal is part of a broader effort by lawmakers to tap into the wealth of seasonal residents and address housing shortages in the state. By imposing a cost on keeping homes empty, supporters hope to encourage property owners to either spend more time in their homes or open them to renters, injecting life and revenue into quiet off-season communities.

    However, opponents warn of unintended consequences, including deterring investment, depressing home values, and pressuring multigenerational families to sell beloved beach homes. They argue that the policy casts too wide a net, penalizing not only speculative investors but also those with deep roots in the state.

    The proposal has drawn sharp lines between lawmakers and real estate professionals, full-time residents and part-time neighbors. While some view it as a needed corrective to a distorted housing market, others see it as a shortsighted move that could undermine property rights and local economies. Homeowners would have until July 2026 to adjust to the new law by either proving they spend at least 183 days a year at their property or listing it as a rental.