New tax on high-value second homes challenged in Rhode Island

Law firm Hinckley Allen has filed litigation on behalf of more than 40 Rhode Island homeowners challenging the constitutionality of the state’s new tax on high-value second homes. The lawsuit, filed in Newport Superior Court, challenges a law that took effect July 1, imposing an additional $5 tax for every $1,000 of assessed value on second homes valued above $1 million. The measure has been widely referred to as the “Taylor Swift Tax,” a reference to the singer’s part-time Rhode Island residence. Homeowners argue that the tax violates both federal and state constitutional protections by selectively targeting second-home owners, particularly out-of-state residents who cannot vote in Rhode Island. According to the filing, “there is no reasonable basis or justification for the state to single out these homeowners among all Rhode Island property owners for this additional tax burden.” The tax is charged at a rate of $2.50 for every $500 of assessed value above $1 million, in addition to existing property taxes. ‘Selective tax’ dispute Supporters of the measure have argued that owners of high-value second homes place additional demands on municipal services, fail to maintain their prop...