Mills Act Contracts: San Jose vs Santa Clara
How do mills act contracts rules compare between San Jose, CA and Santa Clara, CA?
San Jose and Santa Clara have similar restriction levels.
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 →Santa Clara, 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 Santa Clara rules →Key Facts Comparison
| Fact | San Jose | Santa Clara |
|---|---|---|
| State authority | Gov Code Section 50280 | - |
| Local code | SJMC Chapter 13.48 | - |
| Term | Ten years, auto-renewing | - |
| Eligibility | Landmark or contributor | Designated historic property |
| Cancellation fee | 12.5% of value | - |
| State law | - | Cal. Gov. Code §§50280-50290 |
| Contract term | - | 10 years auto-renewing |
| Typical savings | - | 40 to 60 percent |
| Cancellation penalty | - | 12.5 percent of value |
Highlighted rows indicate differences between cities.
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.
Santa Clara 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.
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