'Taylor Swift Tax' Defended by Rhode Island Governor

Taylor Swift

Taylor Swift arrives at the 57th Annual Grammy Awards at Staples Center on Feb. 8, 2015 in Los Angeles, California. 

Proposed tax would apply to second homes, like the one Swift has in Westerly, R.I.

The governor of Rhode Island is defending a proposed luxury tax for pricey second homes that has been dubbed the "Taylor Swift tax."

Gov. Gina Raimondo says she wants to raise nearly $12 million by implementing a statewide property tax on second homes worth more than $1 million.

Rowdy Trio Arrested Outside Taylor Swift's Rhode Island House

Grammy winner Swift has a beachfront mansion in Westerly, R.I.

Raimondo says the tax policies she proposed in her budget will create jobs. She is seeking to eliminate a $190 million deficit while implementing no new broad-based tax changes.

The Rhode Island Association of Realtors says the tax could discourage future buyers from purchasing vacation homes in Rhode Island.

Raimondo says she doesn't think it will impact buyers' decisions. She says Newport is still a bargain compared with Nantucket, Mass.