Mills Act Contracts: Palo Alto vs San Jose
How do mills act contracts rules compare between Palo Alto, CA and San Jose, CA?
Palo Alto and San Jose have similar restriction levels.
Palo Alto, CA
Santa Clara County
California Government Code §50280 lets local governments grant property tax reductions to owners of designated historic properties who sign ten-year preservation contracts. Santa Clara County and several cities offer Mills Act programs, with savings averaging 40 to 60 percent.
View full Palo Alto rules →San Jose, CA
Santa Clara County
San Jose offers Mills Act historical property tax contracts under California Government Code Section 50280 for City Landmarks and Structures of Merit, providing reduced property tax assessments in exchange for owner commitments to maintain and rehabilitate historic features.
View full San Jose rules →Key Facts Comparison
| Fact | Palo Alto | San Jose |
|---|---|---|
| State law | Cal. Gov. Code §§50280-50290 | - |
| Contract term | 10 years auto-renewing | - |
| Typical savings | 40 to 60 percent | - |
| Eligibility | Designated historic property | Landmark or contributor |
| Cancellation penalty | 12.5 percent of value | - |
| State authority | - | Gov Code Section 50280 |
| Local code | - | SJMC Chapter 13.48 |
| Term | - | Ten years, auto-renewing |
| Cancellation fee | - | 12.5% of value |
Highlighted rows indicate differences between cities.
Palo Alto FAQ
Who qualifies for a Mills Act contract in Santa Clara County?
Owners of properties listed on the County Heritage Resource Inventory or a city historic register can apply. The home must remain owner-occupied or income-producing, and the owner must commit to a written rehabilitation plan.
How much will I save in property taxes?
Savings vary by purchase date and rental income, but typically range between 40 and 60 percent annually. Properties bought recently at high market values usually see the largest reductions because Proposition 13 base values are highest.
San Jose FAQ
How much can a Mills Act contract save in property taxes?
Savings vary widely but typically range from 40% to 60% off normal Proposition 13 assessed value. Older purchases with low base years may save less; recent purchases usually save more.
Can a Mills Act contract be transferred to a new buyer?
Yes. Mills Act contracts run with the land and bind successors. New owners inherit both the tax savings and the maintenance and rehabilitation obligations approved by the city.
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