What is a Mills Act contract and how does it change my property tax?
Answered by AskBaily Editorial · Updated
Short answer
The Mills Act is a 1972 California statute (Gov Code §50280-50290) that lets a city contract with the owner of a designated historic property to reduce property tax in exchange for a rehabilitation-and-maintenance plan. San Diego Mills Act contracts typically cut assessed value 40-70%, producing annual tax savings of $5K-$50K+. The tradeoff: preservation review on every exterior change for the 10-year renewing term.
In detail
The Mills Act is a 1972 California statute (Gov Code §50280-50290) that lets a city contract with the owner of a designated historic property to reduce property tax in exchange for a rehabilitation-and-maintenance plan. San Diego Mills Act contracts typically cut assessed value 40-70%, producing annual tax savings of $5K-$50K+. The tradeoff: preservation review on every exterior change for the 10-year renewing term.
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