Mills Act

The Mills Act is a state law allowing cities to enter into contracts with owners of qualified historic properties who actively participate in the restoration, rehabilitation and maintenance of their property. The owner may be granted a reduction of property taxes in exchange for the continued preservation of the property.

Who is eligible for the Mills Act?

A qualified historical property is privately-owned property that is not exempt from property taxation and that also meets either of the following criteria:

• The property is listed in the National Register of Historic Places, or is located within a registered historic district; or
• The property is listed in any official state, county, city, or city and county official register of historical or architecturally significant sites, places or landmarks, including the California Register of Historical Resources, California Historical Landmarks, State Points of Historical Interest, local landmarks, and local survey listings of historical properties.

Contract Specifics

The historical property contract must have a minimum term of ten years, and, as applicable, must contain certain other elements, including the following:

• A provision relating to the preservation of the qualified historical property and, when necessary, the restoration and rehabilitation of the property in conformance with state historic preservation guidelines;
• A requirement for the periodic examination of the property to ensure compliance with the agreement;
• A requirement that the historical property agreement be binding upon successor owners of the qualified historical property; and
• A provision for an automatic one-year extension of the contract, with an additional year added to the initial contract term on each anniversary of the contract, unless either party provides notice of nonrenewal. If a notice of nonrenewal is given, the contract runs for its remaining term.

Frequently Asked Questions