Rhode Island Homeowners Challenge 'Taylor Swift Tax' in Newport Superior Court
A group of Rhode Island homeowners is contesting the state's 'Taylor Swift Tax' through a lawsuit filed in Newport Superior Court. The tax, which went into effect on July 1, 2026, imposes an additional fee on second homes valued over $1 million. The homeowners argue that the tax unfairly targets non-residents who own high-value second homes and cannot vote in Rhode Island elections. They claim that the tax violates both US and state constitutions and lacks a reasonable connection to its intended purposes.
The legal challenge, led by Providence-based law firm Hinckley Allen, disputes the arguments put forth by supporters of the tax. The homeowners' legal team contends that second-home owners do not use municipal services in the same way as full-time residents and contribute positively to property values. They also question whether encouraging the rental of high-value homes would effectively address the state's affordable housing shortage.
Jerry Petros, chair of Hinckley Allen's Litigation Group, emphasizes that the targeted homeowners already pay substantial property taxes and support various causes in Rhode Island. He warns that the tax could drive some small business owners out of the state. The lawsuit highlights the issue of representation, as many affected non-residents cannot vote against the lawmakers who implemented the tax, raising concerns about 'taxation without representation.'
The legal challenge does not automatically invalidate the tax, as it will need to be tested in court. The lawsuit does not provide the state's position on the matter, making it an allegation rather than a definitive ruling against the tax. The homeowners involved in the case include prominent figures like billionaire Charles Royce, who owns a high-value second home affected by the tax. Hinckley Allen has a track record of successfully challenging Rhode Island laws, as seen in a previous case involving shoreline property rights.