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| Historic Craftsman home |
The Mills Act Property Tax Abatement Program is designed to help owners who have purchased a historic property, or have high tax burden due to transfer or property reassessment. According to the State's Office of Historic Preservation:
"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. Mills Act contracts are between the property owner and the local government granting the tax abatement. The Office of Historic Preservation is not a signatory to Mills Act contracts.
"Each local government establishes their own criteria and determines how many contracts they will allow in their jurisdiction. For answers to specific questions such as local eligibility criteria, application procedures, and contract terms, contact the city or county official for your jurisdiction."
The City of Long Beach's program for the Mills Act is hosting mandatory workshops in the near future for those interested in applying for this program, on January 28 and February 18: "Although tax savings cannot be guaranteed through entering into a Mills Act contract, estimates can be made through the application process to determine likely potential property tax savings. The Mills Act is especially beneficial for recent buyers of historic sites, or owners who may have recently had a property transfer or tax reassessment. The program is generally less beneficial for property owners who have owned their property for more than 10 years."
The application package deadline is March 3. Please go to the City's website for more information on this process. For properties and owners who qualify, there may be significant tax savings. "The incentive is achieved through property tax relief to owners of historic properties in exchange for the rehabilitation and restoration of the historic property pursuant to the terms of a Mills Act contract with the City." The purpose of the Mills Act is to rehabilitate and restore the historic properties, which means it is located in one of the historic districts or is a designated historic building.
Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
