Taylor Swift tax' goes into effect in Rhode Island

Rhode Island’s “Taylor Swift tax” took effect Wednesday, imposing a new state-level charge on certain high-end homes that sit empty for most of the year. The Non-Owner Occupied Property Tax applies to residential properties assessed above $1 million that are not occupied by the owner or a tenant for at least 183 days annually. The tax rate is $2.50 per $500 of assessed value above $1 million, on top of existing local property taxes. For example, Westerly’s Watch Hill “Holiday House” (High Watch), assessed at more than $28 million, could add about $136,000 per year if ownership exceeds the half-year non-occupancy threshold. In May, the state identified 22,431 such properties and flagged 8,245 as potentially subject. Revenue supports Rhode Island’s Low-Income Housing Tax Credit Fund, while owners may seek exemptions for long-term rentals or qualifying registered short-term rentals. Critics say administration could be burdensome.