PROVIDENCE, R.I. (WPRI) — A new tax on high-end Rhode Island homes that sit empty for most of the year took effect Wednesday, affecting thousands of property owners across the state.
Rhode Island’s “Non-Owner Occupied Property Tax,” known better as the “Taylor Swift tax” because of the pop star’s Watch Hill estate, is a new state-level tax on residential properties assessed at more than $1 million that aren’t occupied by the owner or a tenant for at least 183 days a year.
What is the ‘Taylor Swift tax’
The tax is charged at a rate of $2.50 for every $500 of assessed value above $1 million, on top of the property taxes owners already pay to their city or town. For example, Swift’s mansion, known as “Holiday House” or “High Watch,” is assessed at more than $28 million, according to Westerly land records.
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Swift’s tax bill would increase by about $136,000 per year under the new law, unless she qualifies for an exemption. The law uses the assessed value set by municipalities and not the sales value.
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Revenue from the tax is earmarked for Rhode Island’s Low-Income Housing Tax Credit Fund, which is used to build affordable housing across the state…