by John Alesi, Orange County REALTOR®
Orange County CA Real Estate
Do you own a Craftsman bungalow, a Praire Style house, Victorian, Spanish Revival, Mission Revival, Tudor, Streamline Moderne; an Eichler, Neutra or other "designer" home? Well, read on and save some cash!In 1972, the State of California enacted the Mills Act, as a way to partner with homeowners to preserve historical houses. By working with local governments, owners of qualified properties can receive tax reductions of 40-60% if they restore and maintain their historic homes. Homeowners use the tax savings to paint, re-roof, restore homes and maintain their condition. Citizens benefit from the tax breaks and the local communities benefit from rehabilitation of neighborhoods, added tourism and pride of ownership. An additional benefit to the program is that the tax rate is transferable to successive owners. In one example a house that was valued at $260,000 with a tax rate of $2,000 was sold for $1,000,000 but retained the $2,000 tax, a savings of $10,000 per year to the new owner.
In order to receive the tax breaks, the homeowner must enter into a contract with their local city or county for a 10-year period, which is renewable and transferable when the property is sold. Property owners agree to maintain their structures in accordance with historical standards and are subject to periodic inspections. To qualify for Mills Act relief, the building must be listed on one of several federal, state, or local historical registers including the National Register of Historical Places and the California Register of Historical Resources.
For complete details, visit the Mills Act Property Abatement site of the Office of Historic Preservation on the State of California website. While the Mills act only covers California buildings and structures, you may check with your state government resources to find similar programs.
John Alesi, Mission Viejo REALTOR®
www.YourOCHome.com
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