Rhode Island proposes surtax on wealthy homeowners amid federal policy shifts

Governor McKee and state lawmakers are debating a proposed surtax on second homes valued over $1 million as Rhode Island faces budget pressure from federal funding changes and delays to an offshore wind project.

Rhode Island is considering a new surtax on expensive second homes as state leaders respond to fiscal pressure tied to recent federal policy shifts. Governor Dan McKee has been courting business leaders and signaling openness to a broader energy strategy while the state copes with the announced departure of a major employer and pauses to a large offshore wind project. The measure on second homes, sometimes called the "Taylor Swift tax," has surfaced ahead of this year's budget debates. The governor is also managing the state's response to a deadly shooting on Brown University's campus in December. Key facts: - The proposed surtax would apply to second homes valued at more than $1 million and is slated to take effect this summer if enacted, according to the article. - The legislature will debate the measure during the annual budget process over the next six months; Senate President Valarie Lawson previously supported the idea and House Speaker Joe Shekarchi has said he is willing to consider it. - The article mentions that Hasbro announced a move to Boston, which will send at least 700 jobs out of Rhode Island. - The Revolution Wind offshore project has been paused by federal suspension orders; developers and Rhode Island and Connecticut attorneys general have filed lawsuits and asked to consolidate their cases in federal court. - Revolution Wind is a 704-megawatt project reported as able to power about 350,000 homes across both states, with roughly 400 megawatts allocated to Rhode Island; filings said the project was around 87% complete when the latest suspension was issued. - State officials have cited the wind project and federal funding changes as key economic pressures that affect jobs, ports and the state's energy plans. Summary: The surtax proposal is part of a broader effort by state leaders to address revenue shortfalls linked to federal funding reductions and interruptions to planned renewable energy projects. Lawmakers will consider the surtax over the coming six months as they work on the state budget. Separately, Rhode Island and Connecticut attorneys general and the Revolution Wind developers have sought consolidated court action and a hearing is scheduled in federal court on Jan. 12. The final budget and legal outcomes are undetermined at this time.