Episode summary
‘Taylor Swift Tax’ Stirs Bad Blood With Rhode Island Homeowners | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 9 min · Hosts: Carol Massar, Tim Stenovec, Norah Mulinda · Guests: Greg Ryan
Summary
Rhode Island’s new second-home tax is drawing backlash because it applies to vacation properties valued over $1 million and is being framed around Taylor Swift’s Watch Hill mansion. Greg Ryan explains that the measure, passed last year as part of the state budget, is designed to raise money for affordable housing by charging $5 for every $1,000 of assessed value above that threshold.
The most intense pushback is not coming from the biggest mansion owners, but from families with modest coastal homes that have been in place for generations. Ryan says those owners can see tax bills rise by 50% or more, while limited winter usability and a short rental season make it hard to offset the cost. Notices went out in May to about 8,000 potentially affected homeowners, and a Providence law firm is now organizing a constitutional challenge.
Ryan says the tax fits a broader pattern in Democratic states trying to tap wealthier homeowners to fund housing or close budget gaps. He expects the model could spread to other vacation markets, though he does not yet see a meaningful exodus of buyers from Rhode Island.
Key takeaways
- Greg Ryan says Rhode Island’s second-home tax applies only to vacation properties valued over $1 million, at $5 per $1,000 above that level.
- The strongest anger is coming from long-held family vacation homes, not just ultrawealthy owners like Taylor Swift.
- Ryan says about 8,000 notices went out in May, and a Providence law firm is preparing a constitutional challenge.
- He sees the tax as part of a broader Democratic-state trend toward millionaire and second-home taxes to fund housing.
- Ryan does not expect a meaningful exodus yet, though one agent already saw a $10 million to $20 million buyer walk away.
Notable quotes
“It's half a percentage point and the was passed last year as part of the state budget”
“It's really coming from these homeowners who've had modest properties, modest vacation homes in their family for generations”
“The state sent out notices to those who may be subject to the tax in May, sent about 8,000 notices”
“I think so. I I do think this is a bellweather”
“they're arguing this vi this tax violates the the federal and and state constitution”
How the episode opens
Bloomberg Audio Studios podcasts, radio, news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio. Let's talk a little bit about Taylor Swift because everybody is talking about this wedding that is supposedly happening this weekend at Madison Square Garden, but the Bloomberg audience knows that's not the most important thing to be focused on,
Especially if you live in Rhode Island. — This is very true because we also have what they're calling the Taylor Swift tax.
Greg Ryan writes all about it. Greg joins us from Boston. He's Bloomberg News Boston money and power reporter.
Greg, good to have you on the program. This is a most read story on the Bloomberg terminal and for very good reason. It's not just the headline that is amazing.
The entire story is amazing. Taylor Swift taxers bad blood with Rhode Island homeowners. What is the so-called Taylor Swift tax?
So, the tax is a property annual property tax on second homes in Rhode Island that are valued over $1 million. It's half a percentage point and the was passed last year as part of the state budget. The purpose is to raise money to build more affordable housing in Rhode Island.
It seems like a relatively small amount. And I the reason I I bring that up is I just just for the Taylor Swift example. Okay. She has a 12,700 ft mansion. It's assessed at $28 million. So that means an extra tax bill of about $136,000. That's not that much for her given the the value of the home. How is it affecting though people at the lower end of the the income and fame spectrum?
Yeah, it's interesting. I mean, the the loudest protests here are not coming from those who own mega mansions next to to Taylor and in Watch Hill.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- property tax
- second homes
- affordable housing
- state revenue
- rhode island
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
