A group of more than 40 homeowners has gone to court to challenge Rhode Island's new tax on high-value second homes, HousingWire reports. The suit, filed in Newport Superior Court by the law firm Hinckley Allen, asks the court to strike down the recently enacted levy on constitutional grounds.
The law, which took effect July 1, adds a charge of $5 for every $1,000 of assessed value above $1 million on non-owner-occupied homes, layering the new levy on top of regular property taxes for second homes above that threshold. The measure, passed by lawmakers last year, has become widely known as the "Taylor Swift tax," a nod to the singer's oceanfront home in the Watch Hill section of Westerly.
The plaintiffs argue the statute violates protections in both the federal and state constitutions by singling out second-home owners as a class — and, in practice, falling heavily on out-of-state residents who own property in coastal communities such as Newport and Little Compton but cannot vote in Rhode Island elections. That mismatch between who pays the tax and who elects the lawmakers who imposed it sits at the center of the case.
State officials designed the levy as a dedicated funding stream for affordable housing construction. Official projections put collections at about $24.5 million in the first year, growing to more than $27 million annually by 2031.
The challenge now sets up a closely watched test of how far a state can go in taxing property held by owners outside its electorate — a question with implications well beyond Rhode Island as other coastal states weigh how to treat high-value second homes.