Governor Kathy Hochul recently announced that she will propose a tax on second homes in New York City worth more than $5 million. A tax like this is not new and was recently passed by Rhode Island. However, Hochul’s announcement lacks details on what exactly this tax will be and how it will be implemented. It is also unclear what types of consequences might arise from this proposal to raise an estimated $500 million annually from those dubbed as the ultrawealthy and elite.

Rhode Island’s So‑Called “Taylor Swift Tax”

In 2025, Rhode Island lawmakers considered and advanced legislation — sometimes informally dubbed the “Taylor Swift Tax” — targeting high-value, non-owner-occupied homes. The proposal aimed to impose higher property tax rates or surcharges on luxury second homes that are not used as primary residences or rental properties.

This tax has very little to do with Taylor Swift except that she owns what is estimated to be the most expensive home in Rhode Island, and she seldom uses it. The Rhode Island legislation used Swift as an example to represent the numerous ultrawealthy taxpayers who own these vacation homes not as rentals but instead as investment properties that are sometimes used for their own personal enjoyment. According to CNBC, a select number of states have used this tax in an attempt to tax wealthy taxpayers despite their significant investment in that jurisdiction.

New York City Eyes A Similar Tax

As reported by The New York Times, Hochul has decided to push for a similar tax in New York City. The specifics of the proposal have yet........

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