A lawsuit was recently filed in R.I. Superior Court on behalf of more than 40 Rhode Island homeowners challenging the constitutionality of the state’s new tax on high-value second homes.
Dubbed the “Taylor Swift Tax,” the law, which took effect July 1, imposes an additional $5 tax for every $1,000 of assessed value on second homes assessed at more than $1 million.
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The tax is expected to generate about $24.5 million in its first year, growing to more than $27 million by 2031.
The lawsuit filed by Providence-based Hinckley, Allen & Snyder LLP contends the new law violates both the state and U.S. Constitution because it selectively targets a class of property owners, disproportionately affecting out-of-state residents who cannot vote in Rhode Island elections.
Gov. Daniel J. McKee’s administration deferred questions about the lawsuit to the Division of Taxation, whose spokesperson Paul Grimaldi declined to comment on the pending litigation.
