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.
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.