Page 70 - AAGLA-MAY 2022

MProperty Taxes Too Much? Check Out the Mills Act
By Daniel Yukelson, Executive Director
ost property owners are restoration and preservation of qualified historic buildings
unfamiliar with the Mills Act. The by private property owners.
Mills Act (California Government Code, Article 12, Sections 50280- 50290) is a California state law that allows cities to enter into contracts with the owners
of qualified historic structures. These Mills Act contracts require property owners to make improvements to and take steps to preserve their historical properties and in exchange, they are entitled to a reduction in their property tax bill to help offset the costs of continued preservation of the property. The Mills Act is recognized by the State of California as the “single most important economic development incentive program in California for the
Local government entities establish their own criteria and determines how many Mills Act contracts they will allow within their jurisdiction. As an example, the City of Pasadena Historic Property Contract Program was established by local ordinance in October 2002 under the authority of the Mills Act. Under this Mills Act, local governments may enter into historic property contracts with owners of qualifying privately owned historic properties who agree to rehabilitate, restore and/or maintain their property in accordance with the U.S. Secretary of Interior Standards in exchange for the granting the property tax abatement.
70 MAY 2022 • WWW.AAGLA.ORG