Get CITY OF SAN DIEGO MILLS ACT AGREEMENT APPLICATION ... - Sandiego

A: Owners of historic buildings may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least a ten-year period.

The Mills Act program is especially beneficial for recent buyers of historic properties and for current owners of historic buildings who have made major improvements to their properties.

Enabled by state legislation in 1972 and adopted by the San Diego City Council in 1995, the Mills Act offers a unique tool for historic preservation through a revolving 10-year contract between the City and the property owner.

The Homeowners' Exemption provides for a reduction of $7,000 off the assessed value of your residence. This results in an annual property tax savings of approximately $70. Property owners who occupy their homes as their principal place of residence on January 1, and each year thereafter, are eligible for the exemption.

It must meet qualifying criteria such as significant architecture, association with a historically significant event or person, or location in a historic district, such as Marston Hills. Once designated as a historical site, the owner can then enter into a voluntary contract with that city.

Mills Act participants may realize substantial property tax savings of between 40% and 60% each year for newly improved or purchased older properties because valuations of Mills Act properties are determined by the Income Approach to Value rather than by the standard Market Approach to Value.

The Mills Act is the single most important economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners. The Mills Act Program is administered and implemented by local governments.

I want to point out that the Historic Resource Board and Mills Act can only dictate the EXTERIOR of the property. This leaves homeowners to do any changes on the interior as long as it doesn't affect exterior window openings or structure. This is nice for people that want to, say, paint murals in their home office.