Rhode Island House approves $13.9 billion budget with new real estate taxes

The Rhode Island House of Representatives voted in favor of a proposed state budget for the upcoming fiscal year

which totals $13.9 billion and includes two significant changes to real estate taxes

The vote count was 66 in favor and nine against. One of those changes is the non-owner occupied tax, dubbed the Taylor Swift tax

Now, this means if someone owns a second home valued at more than $1 million

they will now have to pay an additional surcharge tax. The second change is the conveyance tax

It's now increasing by 63%, meaning sellers will owe significantly more when they transfer ownership of their property

Money collected from those two specific taxes will be used to fund housing programs

including creating more affordable housing options and low-income tax credits to help make housing more affordable for low-income individuals or families

Taylor Swift owns a sprawling mansion in Watch Hill, a small seaside community that's known for its charming grand homes, views overlooking the Atlantic Ocean, and scenic lighthouse

Swift purchased the home for million in 2013 and now Rhode Island new budget proposal could hit Swift and dozens of her wealthy neighbors with six tax bills According to Realtor the rate is

for every $500 of assessed value above the first million dollars. Now, this leaves owners of these

homes two choices. Live in the home for half the year, 183 days, or rent out the home for majority

of the year so it doesn't sit empty. Supporters of the bill say the new tax could generate money

that helps build or support housing for people with lower incomes. Opposers say it might reduce

interest or desire among potential buyers. Wealthy buyers might be discouraged by having to pay the

new recurring charge and could look for vacation homes in other desirable areas. The Rhode Island

Association of Realtors is planning to fight back, Realtor.com reports. The proposed budget is now in

the hands of the Rhode Island Senate, which would need to approve the legislation for it to be signed

into law. If it becomes law, the new property taxes would take effect in July 2026. For Straight

Arrow News, I'm Lauren Keenan. If you want more on this story, download the Straight Arrow News app

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