A developer who owns or purchases a historic building in Vallejo 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 10-year period. In order to be eligible, a property must be designated as a landmark or a contributing resource within historic district, or be listed on the National Register of Historic Places or the California Register of Historic Places.
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. The City of Vallejo participates in the Mills Act, and the Planning Division processes all Mills Act applications and administers the associated contracts.
WHAT IS THE MILLS ACT PROGRAM?
- Adopted by California Legislature in 1972.
- Adopted to promote the preservation of property of historical significance by authorizing local governments to grant property tax relief to owners of qualified historic properties.
- A voluntary program providing reduced property taxes on eligible historic properties.
- Overall intent was to provide an incentive for owners to preserve and maintain their properties.
HIGLIGHTS AND BENIFITS
- Contract term is 10 years.
- Contract is binding on successors in interest in the property.
- Provides for the preservation of a qualified historic property and when necessary, its restoration and rehabilitation.
- Periodic inspection of the subject property.
- Reduction in property tax.
- Increases likelihood of preservation and property value.
- Assures mechanism to avoid deterioration.
- Can encourage buyers to purchase historic structures.
- Visually improves the physical environment of our community.
- For sample of how taxes are reevaluated, visit here.
How do i apply for a mills act contract?
Below is a high-level process for processing a request for a Mills Act Contract.
If you have any questions regarding the Mills Act Property Tax Abatement Program, please reach out to the Planning Division at [email protected]t or at (707) 648-4326.