Latest news with #Non-OwnerOccupiedPropertyTaxAct
Yahoo
8 hours ago
- Business
- Yahoo
What's the 'Taylor Swift Tax'? How Rhode Island proposal could impact the star
Taylor Swift soon may be required to pay a hefty amount of taxes on her New England home, which is undergoing renovations, if a proposed tax act in Rhode Island goes through. Earlier this month, Rhode Island's House Finance Committee approved the state's 2026 budget, which includes a tax that targets high-end, vacant properties in the state. The "Non-Owner Occupied Property Tax Act," deemed the "Taylor Swift Tax," proposes a statewide tax rate for non-primary residences valued at more than $1 million. If passed, the act would tax properties, which are not the primary residences of their owners, valued more than $1 million. As Rhode Island's House of Representatives continues to work through the budget bill, here's what to know about the proposal and how it may impact the superstar's wallet. The proposed act would mean that "non-owner occupied" homes, or secondary residences, valued more than $1 million, would be taxed at $2.50 for each $500 of assessed value. For example, a property assessed at $1.2 million would see an annual tax of $1,000 and a property at $2 million would have a $5,000 annual tax, New England law firm Pierce Atwood explained in a blog post. The total value of the property is not taxed, just the value that exceeds $1 million. So how much would Swift potentially be taxed? When she purchased the house in 2013, it was worth about $17 million, but the property value has increased over the last decade. Zillow lists the property at $28.1 million, meaning it would be taxed at about $135,500 annually. The budget bill passed through the state's House Finance Committee days before authorities identified the remains of 31-year-old Eric Wein on Swift's property, shared by the South Kingstown Police Department on June 13. Wein's remains had washed ashore in an enclave on Swift's property on May 14. Taylor Swift's home: Human remains found near Taylor Swift's Rhode Island home have been identified The "Non-Owner Occupied Property Tax Act" has not been passed yet. As of June 11, the state's 2026 budget bill, which includes the act, was passed in the House Finance Committee. As of June 26, it is under review of the House of Representatives as a whole. If passed, the tax would affect properties on and after July 1, 2026, the state's budget bill reads. If passed, the tax would affect owners of residential properties who own a property that does not serve as their primary residence, valued at $1 million or more as of Dec. 31 of the tax year. The owner would not live at the property the majority of days out of the year. While the tax may be imagined for wealthy folks like Swift, Rhode Island natives could also be impacted by the tax, Stephen MacGillivray, a Pierce Atwood partner, told USA TODAY. "Rhode Island's a strange state where people in the northern part of the state have a summer house 40 minutes away ... often handed down from generation to generation. Those sometimes modest homes are now quite often worth more than $1 million, so there's concern that this is going to hit Rhode Islanders." The tax would not affect owners of rental properties that have been rented within the past 183 days, the budget bill states. MacGillivray said this exception may lend itself to an "interesting loophole." "You can imagine people coming up with all sorts of arrangements from legitimate to not so legitimate, where by they rent their house while they're not there," he said. High-end properties that are not an owner's primary residence can have an affect on their neighborhoods, city and state at large, the budget bill states. These property owners may not have a "vested" interest in the community their property is within and often, these properties remain "deliberately" vacant. MacGillivray said some believe these vacant properties are an eyesore in a vibrant community at the budget bill states that vacant properties often are in greater demand of police and fire protection. This story was updated to clarify where Taylor Swift's Rhode Island home is located. and correct typos. Contributing: Jay Stahl, USA TODAY Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@ This article originally appeared on USA TODAY: 'Taylor Swift Tax': Rhode Island housing policy could impact singer Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
14 hours ago
- Business
- USA Today
What's the 'Taylor Swift Tax'? How Rhode Island proposal could impact the star
Taylor Swift's Cape Cod home is reportedly worth about $28.1 million. If the proposal passes, she would be required to pay about $135,500 in taxes annually. Taylor Swift soon may be required to pay a hefty amount of taxes on her Cape Code home, which is undergoing renovations if a proposed tax act in Rhode Island goes through. Earlier this month, Rhode Island's House Finance Committee approved the state's 2026 budget, which includes a tax that targets high-end, vacant properties in the state. The "Non-Owner Occupied Property Tax Act," deemed the "Taylor Swift Tax," proposes a statewide tax rate for non-primary residences valued at more than $1 million. If passed, the act would tax properties, which are not the primary residences of their owners, valued more than $1 million. As Rhode Island's House of Representatives continues to work through the budget bill, here's what to know about the proposal and how it may impact the superstar's wallet. What is the so-called 'Taylor Swift Tax'? The proposed act would mean that "non-owner occupied" homes, or secondary residences, valued more than $1 million, would be taxed at $2.50 for each $500 of assessed value. For example, a property assessed at $1.2 million would see an annual tax of $1,000 and a property at $2 million would have a $5,000 annual tax, New England law firm Pierce Atwood explained in a blog post. The total value of the property is not taxed, just the value that exceeds $1 million. So how much would Swift potentially be taxed? When she purchased the house in 2013, it was worth about $17 million, but the property value has increased over the last decade. Zillow lists the property at $28.1 million, meaning it would be taxed at about $135,500 annually. The budget bill passed through the state's House Finance Committee days before authorities identified the remains of 31-year-old Eric Wein on Swift's property, shared by the South Kingstown Police Department on June 13. Wein's remains had washed ashore in an enclave on Swift's property on May 14. Taylor Swift's Cape Cod home: Human remains found near Taylor Swift's Rhode Island home have been identified When would the tax act go into effect? The "Non-Owner Occupied Property Tax Act" has not been passed yet. As of June 11, the state's 2026 budget bill, which includes the act, was passed in the House Finance Committee. As of June 26, it is under review of the House of Representatives as a whole. If passed, the tax would effect properties on and after July 1, 2026, the state's budget bill reads. Who would the tax affect? If passed, the tax would effect owners of residential properties who own a property that does not serve as their primary residence, valued at $1 million or more as of Dec. 31 of the tax year. The owner would not live at the property the majority of days out of the year. While the tax may be imagined for wealthy folks like Swift, Rhode Island natives could also be impacted by the tax, Stephen MacGillivray, a Pierce Atwood partner, told USA TODAY. "Rhode Island's a strange state where people in the northern part of the state have a summer house 40 minutes away ... often handed down from generation to generation. Those sometimes modest homes are now quite often worth more than $1 million, so there's concern that this is going to hit Rhode Islanders." A potential renting loophole The tax would not affect owners of rental properties that have been rented within the past 183 days, the budget bill states. MacGillivray said this exception may lend itself to an "interesting loophole." "You can imagine people coming up with all sorts of arrangements from legitimate to not so legitimate, where by they rent their house while they're not there," he said. Why did Rhode Island propose the tax act? High-end properties that are not an owner's primary residence can have an affect on their neighborhoods, city and state at large, the budget bill states. These property owners may not have a "vested" interest in the community their property is within and often, these properties remain "deliberately" vacant. MacGillivray said some believe these vacant properties are an eyesore in a vibrant community at the budget bill states that vacant properties often are in greater demand of police and fire protection. Contributing: Jay Stahl, USA TODAY Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@
