Many of our clients own seasonal homes in Rhode Island. That arrangement just got more expensive for individuals with significant Rhode Island properties.

The Rhode Island General Assembly recently passed the Non-Owner Occupied Property Tax Act otherwise known as “The Taylor Swift Act”. Here’s what you need to know –

Who does it apply to:

• The tax applies to residential property that does not serve as the owner’s primary residence (not occupied by the owner for more than 6 months each year). Note:  you can’t claim that you are a Florida resident and occupy a Rhode Island residence for more than 6 months each year.
• The tax only applies to a property assessed at over $1 Million.
• The tax applies whether real estate is owned personally or in a partnership or company.
• The tax applies whether or not you are domiciled in Rhode Island.

Exemption:

• There is an exemption from the tax for property that is rented for more than 183 days each year.

Tax:

• Rate is $2.50 on every $500 exceeding $1 Millon.
• The $1 Million threshold is adjusted for CPI increases beginning July 1, 2027.
• This is in addition to other property taxes.
• Payable quarterly.
• Begins on July 1, 2026.
• Redetermined annually and will never be less than the prior year’s tax.

For example, if a party owned a $3 Million residential property in Rhode Island that is not their primary residence, the annual tax under this act would be $10,000

As you consider a possible change of domicile to another state or a continuation of your out-of-state residency, this is certainly another factor to consider.

Karen G. DelPonte, Esq.
Lynn E. Riley, Esq.
Bridget L. Mullaney, Esq.
Nancy F. Chudacoff, Esq.
Rory H. McEntee, Esq.
Cameron & Mittleman, LLP
Estate Planning Department

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