'Taylor Swift Tax' May Pose Risk To Rhode Island Housing Market

Proposed legislation to non-owner occupied properties not only stands to hurt the pocketbook of pop icon Taylor Swift, but could also damage the Rhode Island housing market, according to a report from Realtor.com.

"Nicknamed the 'Taylor Swift Tax,' the proposed charge isn’t just about the world’s biggest pop star. It’s the latest front in Rhode Island’s escalating fight over housing affordability, local tax policy, and the rising tide of second-home ownership in vacation towns," the real estate website reported.

The bill, which is in committee, would impose a non-owner occupied property tax on residential properties assessed in excess of $800,000.

Swift owns an $18 million mansion in Westerly, Realtor.com reported. Under the proposed legislation, properties valued at more than $2 million would be hit with a 0.6% tax.

While the Realtor.com article contended that "real estate professionals and homeowners warn that targeting high-end vacation homes could backfire, chilling demand, hurting the local market, and forcing longtime families to rethink their generational beach cottages," it also pointed out that "wealthy absentee owners (including celebrities and out-of-state investors) drive up home prices, squeeze out locals, and leave charming seaside communities empty for half the year."

Related: Human Remains Found Near Taylor Swift's Mansion Identified: Report

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