California Government Code 50280 and LA County Code Title 22.124 allow Mills Act contracts that cut property tax bills 60 to 70 percent for designated historic property owners who agree to ten-year preservation plans.
The Mills Act is a state historic preservation incentive established by California Government Code 50280 through 50290. LA County implements it under Title 22.124 for county-designated landmarks and contributors in historic districts in unincorporated areas. The owner enters a ten-year contract with the County, automatically renewing each year, agreeing to maintain and restore the property per a work plan. The County Assessor then values the property using a capitalized income method instead of market value, typically yielding a 60 to 70 percent reduction in annual property taxes. The Department of Regional Planning monitors compliance. Many incorporated cities including Pasadena, Long Beach, and Los Angeles operate parallel Mills Act programs separately.
Failing to perform the Mills Act work plan, neglecting maintenance, or making unapproved alterations triggers contract cancellation, a 12.5 percent of value penalty under Government Code 50286, and loss of tax savings.
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