Business
Rhode Island’s ‘Taylor Swift Tax’ on vacation homes of the wealthy is spreading to other states
Taylor Swift attends the 67th GRAMMY Awards on February 02, 2025 in Los Angeles, California.
Frazer Harrison | Getty Images Entertainment | Getty Images
A version of this article appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
A new push by states to tax the real estate of the wealthy has sparked a backlash among brokers and potential buyers, who say the taxes punish the most important local spenders.
From tax hikes on pricey second homes in Rhode Island and Montana to Cape Cod’s proposed transfer tax on homes over $2 million and the L.A. mansion tax, state and local governments see a revenue gold mine in the pricey properties of the wealthy.
“It’s a smack in the face to people who just spend money here,” said Donna Krueger-Simmons, sales agent with Mott & Chace Sotheby’s International in Watch Hill, Rhode Island.
The tax hikes are being driven by tighter state budgets and populist anger over housing costs. States are looking to offset budget cuts expected from the new tax and spending bill in Washington. At the same time, the housing market has become a tale of two buyers, with the middle class and younger families struggling to afford homes while the luxury housing market thrives from wealthy all-cash buyers.
The solution for many states: tax the homes of the rich.
Rhode Island’s new levy, nicknamed “The Taylor Swift Tax,” is among the most extreme. The popstar bought a beach house in the state’s elite Watch Hill community in 2013.
The measure imposes a new surcharge on second homes valued at more than $1 million. For non-primary residences, or those not occupied for more than 182 days a year, the state will charge $2.50 for every $500 in assessed value above the first $1 million. That charge is on top of existing property taxes and will add up to big increases for luxury homes in Newport, Watch Hill and other well-heeled, summer communities in the state.
Swift’s house, for instance, is assessed at around $28 million, according to local real estate records. Her current property taxes are estimated at around $201,000 a year. The new charges will add another $136,442 to her annual taxes, bringing her yearly total to $337,442 – even though locals say she rarely visits.
Real estate brokers say the increase targets the very taxpayers who already contribute the most. Wealthy second-homeowners pay hefty property taxes but don’t use many local services, since their primary residences are in New York; Boston; Palm Beach, Florida; or other locales. Their kids typically don’t attend the local schools, and they’re infrequent users of the police, fire, water and other municipal services since most stay for only 10 to 12 weeks out of the year.
“These are people who just come here for the summer, spend their money and pay their fair share of taxes,” said Krueger-Simmons. “They’re getting penalized just because they also live somewhere else.”
Brokers and longtime residents say the summer residents of Newport, Watch Hill and other seasonal beach towns are the economic engines for local businesses, restaurants and hotels.
“You’re just hurting the people who support small business,” said Lori Joyal, of the Lila Delman Compass office in Watch Hill. “You’re chasing away the people who spend most of the money in these towns.”
Rhode Island is also hiking its conveyance tax on luxury real estate starting in October. The tax on real estate sales will be an additional $3.75 for each $500 paid above $800,000 for a real estate purchase. At the same time, the state’s steep estate tax deters many of the ultra-wealthy from living there full-time.
Brokers say some second-home owners are considering selling and many would-be buyers are pausing their purchases. While the tax hike alone isn’t expected to lead to any significant wealth flight, Joyal said potential buyers in Rhode Island are already looking at coastal towns in Connecticut as alternatives.
“It’s always about choices,” she said. “At the end of the day it’s about how they can choose to spend their discretionary dollars. Connecticut has some beautiful coastal towns without some of these other high taxes.”
FILE – In this May 27, 2013, file photo, people walk past a house owned by Taylor Swift in the village of Watch Hill in Westerly, R.I.
Dave Collins | AP
Montana has passed a similar tax. The influx of Californians and other affluent newcomers who poured into the state during Covid has led to soaring home prices and growing resentment over gentrification. Meanwhile, the state’s low income tax rate and lack of a sales tax has left it little room for revenue increases to handle the necessary increase in services.
In May, the state passed a two-tier property tax plan, lowering rates for full-time residents and raising taxes on second homes and short-term rentals. For primary residences and long-term rentals valued at or below the state’s median home price, the tax rate will be 0.76%. Homes worth more than that will face a tiered-rate system of up to 1.9% on any value over four times the median price.
The Montana Department of Revenue expects the changes, which will start next year, will hike second-home taxes by an average of 68%. Brokers say some buyers are waiting to see the tax bills next year before making any decisions about whether to buy or sell.
“I’ve heard about some buyers who have put on the brakes to wait for the dust to settle and see what happens,” said Valerie Johnson, with PureWest Christie’s International Real Estate in Bozeman, Montana.
Johnson said that while the tax was touted by legislators as hitting wealthy second-home owners, it will also hit longtime locals who own investment homes and rent them out for income.
“These are small businesses for many people,” she said.
Manish Bhatt, a senior policy analyst at the Tax Foundation, said tax hikes aimed at wealthy second-home owners may be popular politically, but they rarely make for successful or efficient tax policy. Real property tax reform should be broad based, rather than focused on taxpayers who are singled out just because they don’t live in a community full-time, he said.
“There is a grab to find revenue right now,” he said. “But taxing second-home owners could have the opposite impact – dissuading people from owning a second home or continue to own in those communities.”
While the new taxes alone might not drive out the wealthy, “we do know that taxes are important to businesses and individuals and could cause people to make a decision to buy in another nearby state,” Bhatt said.
The projected revenue from the new taxes may also disappoint. When Los Angeles passed its so-called “mansion tax” in 2022, proponents touted revenue projections of between $600 million to $1.1 billion a year. The tax, imposed on real estate sales over $5 million, has only raised $785 million after more than two years, according to the Los Angeles Housing Department.
Higher interest rates that hurt the housing market have played a role, experts say. Yet Michael Manville, professor of urban planning at the UCLA Luskin School of Public Affairs, said wealthy buyers and sellers also reduced transactions in response to the tax.
“The lower revenue is a reason to be concerned because it suggests that the tax might actually be reducing transactions, which in turn can reduce housing production and property tax revenue,” he said.
Last Updated:
PM Modi says the global chip market is expected to grow from the current $600 billion to over $1 trillion in the coming years, and India would capture a significant share of it.
Prime Minister
Narendra Modi
attends the SemiconIndia Exhibition 2025 at Yashobhoomi, Delhi.
Prime Minister Narendra Modi on Wednesday attended the second day of the SEMICON India 2025 event at Yashobhoomi (India International Convention and Expo Centre), Delhi. PM Modi also examined a nanochip at the event.
PM Modi inaugurated the event on Tuesday, where he said the global semiconductor market is expected to grow from its current value of $600 billion to over $1 trillion in the coming years, and expressed confidence that India would capture a significant share of this growth.
He described chips as the “digital diamonds” of the 21st century, in contrast to the “black gold” of oil that shaped the previous one. He highlighted the rapid progress since the launch of the Semicon India program in 2021, with 10 semiconductor projects now underway with a total investment exceeding $18 billion.
PM Modi emphasised that the government is focused on speed, stating, “the shorter the time from file to factory, and the lesser the paperwork, the sooner wafer work can begin.” To achieve this, the National Single Window System has been put in place to streamline approvals.
He also noted that semiconductor parks are being developed across the country under a plug-and-play infrastructure model to offer essential facilities like land and power. These efforts, combined with incentives, are designed to attract more investment and talent.
He said the world trusts India and is ready to build the semiconductor future with the country.
PM Modi remarked that when such infrastructure is combined with incentives, industrial growth is inevitable. Whether through PLI incentives or Design Linked Grants, India is offering end-to-end capabilities. This is why investment continues to flow in, he emphasised.
On Tuesday, Union IT Minister Ashwini Vaishnaw also presented the Vikram 32-bit processor, developed by Isro’s Semiconductor Lab, along with test chips from four approved projects.
Vaishnaw said, “This is a year, 2025, in which many dreams are coming true. On September 2, the Prime Minister was presented with the first made-in-India chip made by CG SEMI. Three more pilot lines are almost on the verge of completion in the next few months. Our design and talent building capabilities have come up very well. On September 2, we presented the 20 chips designed by students and manufactured at our SCL Mohali facility. On September 2, the flagship event witnessed the convergence of all critical stakeholders of the semiconductor ecosystem including Equipment manufacturers, chemical manufacturers, gas manufacturers, and material manufacturer and that that shows the scale at which we are growing and the confidence the world has on India’s semiconductor journey.”
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
Read More
Business
Vikran Engineering IPO Sees Muted Listing, Stock Lists At 2% Premium: Should You Buy, Sell Or Hold?
Last Updated:
Vikran Engineering IPO Listing: The stock lists at a premium of around 2% at Rs 99 apiece on the NSE, compared with the IPO issue price of Rs 97.
Vikran Engineering IPO Listing.
Vikran Engineering IPO Listing: Vikran Engineering Ltd made a muted stock market debut on September 3. The stock was listed at a premium of around 2% at Rs 99 apiece on the NSE, compared with the IPO issue price of Rs 97. However, the stock declined into the red and traded down by 2.32% at Rs 94.7 apiece as against the issue price.
The stock had risen in the morning immediately after the listing and hit the day’s high of Rs 101.77 apiece on the NSE, which was 4.5% higher than the IPO price, before plunging into the red.
On the BSE, the stock opened at Rs 99.7 apiece, which is 2.78% higher than the issue price. The stock is currently trading in red, down by over 2.5%.
The company’s market capitalisation (mcap) stood at nearly Rs 2,600 crore.
The initial public offering (IPO) of Vikran Engineering Ltd was open between August 26 and August 29. It received a strong overall subscription of 24.87 times.
Vikran Engineering IPO Listing: Should You Buy, Sell Or Hold?
“Vikran Engineering Ltd made a modest debut on the stock market with a listing gain of about 2.7% over its issue price of Rs 97, opening at around Rs 99.70. The company operates as a leading EPC player in power transmission, water infrastructure, and railway electrification projects with an asset-light model and a strong execution track record,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
It enjoys robust growth visibility backed by a Rs 2,442 crore order book, supported by government infrastructure spending, she added.
“Investors are recommended to hold their holdings with a stop-loss near Rs 89 to safeguard against volatility, as execution of the strong order pipeline could drive medium-term upside,” Nyati said.
Brokerage firm Master Capital Services in its note said the Vikran Engineering IPO had a debut with a muted listing performance. The stock opened at Rs 99.70, offering a slight premium of 2.7% over its issue price of Rs 97. The IPO saw solid demand, with an overall subscription of 24.87 times, led by exceptional non-institutional buyer interest (61.77x).
Vikran has a good growth opportunity in the infrastructure space, is in demand with a healthy order book and a good execution model with a diversified order book of Rs 24,424 crore as of June 30, 2025, and has a pan-India presence in 16 states. It also has good advantages from government initiatives like the Jal Jeevan Mission and the Revamped Distribution Sector Scheme (RDSS), it added.
“While the current valuation appears to be stretched and cash flow issues remain a concern, the solid running history of execution and a good order book provide a positive long-term outlook on patience for investors,” Master Capital Services said.
The IPO is a mix of fresh issue of shares of about Rs 721 crore and an offer-for-sale portion worth Rs 51 crore by the promoter.
The Mumbai-based company intends to utilise proceeds from the fresh issue to the tune of Rs 541 crore for funding working capital requirements and the rest for general corporate purposes.
Vikran Engineering provides end-to-end services from conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis.
As of June 30, 2025, the company completed 45 projects across 14 states with a total executed contract value of Rs 1,920 crore. It has 44 ongoing projects across 16 states, aggregating orders worth Rs 5,120 crore.
Vikran Engineering’s revenue from operations increased 16.53 per cent to Rs 916 crore in FY25 from Rs 786 crore in the previous financial year, and profit after tax rose 4 per cent to Rs 78 crore in FY25 from Rs 75 crore in FY24.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
Read More
Last Updated:
Yes Bank shares rose after the CCI approved Sumitomo Mitsui Banking Corporation’s plan to acquire up to a 25% stake in the lender.
Yes Bank SMBC Deal
Yes Bank Shares Rise: Shares of Yes Bank gained 2 per cent to Rs 20 on September 3 after the Competition Commission of India (CCI) approved Japan’s Sumitomo Mitsui Banking Corporation’s (SMBC) plan to acquire up to 24.99 percent in the private sector lender.
In its release, the CCI confirmed that the deal “relates to the acquisition of share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation.” SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), is Japan’s second-largest banking group with total assets of around $2 trillion as of December 2024 and a significant global footprint.
This clearance follows the Reserve Bank of India’s (RBI) approval last month for SMBC’s proposal to pick up nearly a quarter of Yes Bank’s equity. The transaction originates from Yes Bank’s May 9, 2025, announcement that SMBC would acquire a 20 per cent stake via a secondary purchase. The deal involves buying 13.19 percent from the State Bank of India (SBI) and 6.81 per cent collectively from seven other lenders, including Axis Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First Bank.
Once completed, the transaction will make SMBC the single-largest shareholder in Yes Bank, marking a significant milestone in the bank’s turnaround journey following its restructuring in recent years. Market participants see the entry of a global player like SMBC as a boost to Yes Bank’s capital strength and credibility.
In a separate development, the RBI has cleared the reappointment of Rama Subramaniam Gandhi as part-time Chairman of Yes Bank. Gandhi, a veteran central banker with 37 years of experience, previously served as RBI Deputy Governor between 2014 and 2017. His new tenure will run from September 20, 2025, to May 13, 2027.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
Read More
US brand Abercrombie & Fitch inks multi-year fashion deal with NFL
The Baby Died. Whose Fault Is It?
PM Modi Attends Second Day Of SEMICON India 2025; Details Here
-
Tech1 week agoReview: Google Pixel 10 Series
-
Sports7 days agoNew Zealand rugby player Shane Christie, who suffered multiple concussions, dies aged 39 – SUCH TV
-
Tech6 days agoTop CDC Officials Resign After Director Is Pushed Out
-
Fashion7 days agoPortugal Jewels Chiado boutique nominated for two global design awards
-
Fashion7 days agoICE cotton futures fall for 2nd consecutive day on strong crop outlook
-
Sports7 days agoNew-look Pac-12 extends CW deal through 2031
-
Fashion7 days agoIsrael’s Delta Galil posts $470 mn Q2 sales, updates 2025 guidance
-
Sports6 days agoDolphins GM Chris Grier says fans threatened his family in string of vile emails after team’s lackluster year