Here we go again.
Another big idea out of City Hall. Another policy pitched as “necessary.” Another bill sent straight to the people least able to absorb it.
The latest proposal coming from City Manager Colin Kennedy would authorize a buyer-paid real estate transfer fee of up to 5%. It’s dressed up in climate and resiliency language, but the mechanics are straightforward: a massive new charge due at closing, imposed on anyone trying to buy a home in Newport.
That matters, because Newport is already one of the most expensive housing markets in the region.
As of Dec. 31, 2025, Newport’s median list price stood at $1,265,000, according to Zillow. That figure isn’t abstract. It’s the starting point. Buyers already have to assemble a down payment, pay for inspections and due diligence, cover lender fees, title, escrow, and all the other unavoidable costs that come with buying a home.
Now City Hall wants to bolt on something else: a potential 5% buyer tax.
On a median-priced home, that’s more than $63,000 in cash, due at closing.
Not financed.
Not amortized.
Just pay it — or walk away.
And if anything goes wrong — a delay, a dispute, a paperwork issue — the proposal doesn’t offer much grace. Unpaid amounts would accrue interest annually, carry penalties, and be secured by a lien against the property.
This isn’t just a fee. It’s a long-term financial hook.
Same City Manager, Same Pattern
This proposal doesn’t exist in a vacuum.
It comes from the same City Manager who pushed forward on unapproved stop sign and speed camera placement, and who is now in the middle of destroying restructuring Newport’s residential parking sticker program, including a $100 fee on second vehicles — a change that has already drawn criticism from residents who feel the costs keep piling up.
Different policies. Same approach: move fast, explain later, and let residents deal with the consequences.
At some point, it’s fair to say what many people in town are already thinking: some people should stay away from the adult table when it’s time to draft policy.
The Five-Year “Exemption” That Isn’t
Supporters of the transfer fee often point to an exemption for owner-occupants as proof the proposal is fair. But the fine print tells a different story.
To qualify, a buyer must maintain owner-occupied residency for five consecutive years. Miss that requirement — even once — and the fee becomes due retroactively, along with interest and penalties.
That raises obvious, real-world questions:
What happens if someone has to relocate temporarily for work?
What if there’s illness, divorce, or a caregiving emergency?
What if renovations delay occupancy?
What if a homeowner needs to sell early because of financial hardship?
Life happens. This policy pretends it doesn’t.
Worse, the unpaid fee doesn’t disappear. It becomes a lien that runs with the property, complicating refinancing, home equity loans, resale, and title insurance clearance.
In practice, the so-called exemption isn’t relief. It’s a five-year compliance trap, enforced long after closing day, and backed by interest if anything goes sideways.
That’s not homeowner-friendly policy. It’s a legal and financial risk layered onto ownership.
Follow the Money
City Hall says this is about protecting the coastline. Fine. But the funding model raises a question no one seems eager to answer:
Why should working-class Newporters, young families, and seniors on fixed incomes be asked to pay tens of thousands of dollars at the closing table — and then live under a five-year residency rule — to help protect $10 million mansions on Ocean Drive, $6 million homes on The Point, and $4 million houses on Wellington Avenue?
The people scraping together a down payment aren’t the ones with private seawalls, sweeping ocean views, and seven-figure equity cushions. Yet under this proposal, they become the primary revenue source — simply because they’re trying to buy.
That’s not shared sacrifice. That’s cost-shifting.
And This Isn’t Happening in a Vacuum
This local buyer fee would also land in a state that has already adopted a separate surcharge on certain high-value non-owner-occupied properties — the so-called “Taylor Swift Tax.”
Different government. Different mechanism. Same lived reality: more layers of cost, more friction, fewer locals able to compete.
The Predictable Fallout
When you dramatically raise the cash required to close — and then tie ownership to years of compliance backed by interest and liens — fewer people can buy.
That means fewer moves, fewer listings, tighter inventory, and higher prices. It means Newport becoming less flexible, less accessible, and more tilted toward those who can absorb costs without blinking.
And when transaction volume drops, the city may find the revenue doesn’t match the projections — because taxing transactions tends to reduce transactions.
That’s not ideology. That’s math.
Bottom Line
With a $1.265 million median list price, buying a home in Newport is already a stretch. Adding a buyer-paid fee of up to 5%, backed by interest penalties, liens, and a five-year residency requirement, doesn’t protect affordability or stability.
It raises the barrier to entry — and keeps it raised long after the keys are handed over.
Here we go again.
And if this is how City Hall keeps governing, Newport won’t become more resilient. It will simply become less accessible to the people who want to call it home.
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