Rhode Island lawmakers want to balance next year's budget with a pair of real-estate levies that critics have nicknamed the "Taylor Swift tax," citing the pop star's $17 million Watch Hill mansion as an example of who would pay.
What Happened: According to a report by NBC 10 News, the House plan would slap a new surcharge on second or seasonal homes valued above $1 million and raise the statewide conveyance tax that sellers pay at closing by 63%.
Owners of non-primary residences left vacant for more than six months a year would owe an extra $2.50 per $500 of assessed value over the first $1 million. A $2.5 million beach house, for instance, would incur roughly $7,500 annually. Swift's 11,000-square-foot estate could face about $136,000 a year. Supporters say the fee could generate tens of millions for affordable-housing programs and dissuade owners from letting luxury properties stand empty.
The Rhode Island Association of Realtors calls both measures detrimental to a market already squeezed by record prices and 30-year mortgage rates near 7%. “Please, don’t take from our housing market at the moment to balance the budget for other items, it’s going to be detrimental,” association president Chris Whitten told NBC 10.
Why It Matters: Taylor Swift paid $17.75 million a decade ago for her 11,000-square-foot Watch Hill mansion, now slated for a 400-square-foot expansion, but the Rhode Island estate is only one piece of a sprawling portfolio. The billionaire singer also owns two Nashville properties, four neighboring homes in Manhattan's Tribeca district, and a 10,000-square-foot Beverly Hills residence once owned by film mogul Samuel Goldwyn.
Music, not side businesses, built Swift's $1.6 billion fortune. Her 149-show Eras Tour grossed roughly $2 billion, paid her up to $13 million per night, and spawned a $261 million concert film plus lucrative merchandising lines that drew fans even without tickets.
Swift's financial sharpness runs in the family. Her father, Scott Swift, a former Merrill Lynch adviser, moved his wealth-management practice to Tennessee to support her early career.
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