Peyton Rhodes (Bloomberg Law): ‘Taylor Swift Tax’ Draws Suit From Rhode Island Homeowners

Rhode Island’s new tax on second homes disproportionately targets non-residents and has no reasonable basis for its selective application, according to a new suit challenging the tax on federal and state constitutional grounds.

Dubbed the “Taylor Swift Tax” after the state’s famous part-time resident, the levy took effect on July 1, 2026, and collects an additional $5 charge on every $1,000 of value that a non-owner occupied home is assessed above $1 million. The state impermissibly designed the charge to target owners who can’t vote in Rhode Island, according to the complaint brought by over 40 owners of property subject to the new tax.

The levy violates the US Constitution’s Dormant Commerce Clause, which the complaint says bars taxes designed to fall disproportionately on out-of-state residents. The allegation references legislative hearings on the bill, during which a sponsor said even though the tax may stir up ire with property owners, “none of these people can vote against me or any of you because they’re nonresidents.”

The suit alleges the charge is also unconstitutionally selective as applied to state residents because it doesn’t directly remedy the issues it claims to address.

“Our Supreme Court has long recognized that selective tax schemes are generally unlawful, and selective tax classifications must bear a reasonable and substantial relationship to their purposes,” according to the complaint.

The tax also violates the US Constitution’s Privileges and Immunities, Takings, and Equal Protection Clauses, and similar state constitutional provisions, according to the suit.

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The case is Adams v. Rhode Island , R.I. Super. Ct., complaint filed 8/19/26 .