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SITE NAVIGATION

Historic Preservation

Mills Act Program

Historic Preservation

Mills Act Program

Historical Property Tax Assistance Program

Application Deadline: July 1st every year

What is the Mills Act Program?

The Mills Act program helps owners of historic properties by reducing their property taxes. In return, owners agree to maintain and invest in their historic buildings. This is California’s main economic incentive for preserving historic homes and buildings.

Enacted in 1972, the California Mills Act legislation grants participating local governments (cities and counties) authority to enter into contracts with owners of qualified historic properties. The City of Sacramento amended the Mills Act Section of the City Code (17.604.720) in 2018 to clarify and streamline the process of applying for and obtaining a Mills Act contract.

How much can I save?

The assessment of a property under a Mills Act agreement, usually, but not always results in property tax relief. Since the city is not directly involved in the tax assessment process, specific questions about property tax valuation should be directed to a tax professional or the Sacramento County Assessor’s office. The State Board of Equalization also offers helpful guidelines.

How to apply step-by-step

Step 1: Check if your property qualifies

Is your property a local historic landmark or contributing resource in a local historic district?
Use the Land Information Lookup App to check.
Is it listed in the state or national historic registers?
If unsure, contact planning@cityofsacramento.org

Step 2: Gather the required documents
You’ll need:

The completed Mills Act Application form
A copy of your property’s grant deed
A copy of your latest property tax bill
Clear color photos of your property (all sides, important interior areas)
Your proposed workplan

Step 3: Submit your application online

Log in to the Public Portal and select “Create a Planning Application” on the home page
After your application has been submitted, application fees will be invoiced and payable through your account within 1-2 business day

Fees

Application fee: $234
Contract fee: $1,170 - $1,989
Reporting & inspection fee (every 5 years): $351

Under most circumstances, these fees will be greatly offset by the benefits received in the form of reduced property taxes.

Reporting and inspections

Every five years, the owner of a property subject to a Mills Act agreement is required to complete and submit the city’s workplan reporting form and pay the reporting and inspection fee. At that time, the city will conduct in-person inspections on an as-needed basis. Planning staff will contact property owners with instructions before the five-year reports are due.

Contract Basics

Mills Act contracts are subject to the requirements in California Government Code, Article 12, Sections 50280 – 50290. For details, see the official Guidelines for the Assessment of Enforceably Restricted Historical Property.

How applications are evaluated

Staff will evaluate applications considering applicable criteria, which include:

The property is significant due to its historic value, location, or other attribute
The applicant has the ability to preserve and, when necessary, restore and rehabilitate the property
The preservation and, when necessary, restoration and rehabilitation of the property will enhance the city’s inventory of historic and cultural resources

City Council:

May choose to approve, approve with conditions, or deny the application.

If no decision is made within one year, the application is deemed denied.
If denied, you must wait one year before reapplying.

Once a contract is signed, accepted, and recorded by the County Recorder, the property is assessed under Article 1.9, section 439.2 of the California Revenue and Taxation Code on the ensuing lien date

Contract renewal and cancellation

The city or property owner may elect to not renew a contract at any time by serving a written notice of non-renewal in advance of the annual renewal date. The notice of non-renewal shall be effective only if served by the owner upon the city at least 90 days prior to the renewal date, or if served by the city upon the owner at least 60 days prior to the annual renewal date. If the city or owner serve a notice of non-renewal the contract will remain in effect for the balance of the remaining term (/- 9 years). No penalty will result if a property owner elects not to renew a contract.

Under rare circumstances, the city may cancel a Mills Act contract or bring a lawsuit to enforce the contract. Notice and a public hearing are required to cancel a contract. To cancel the contract, the city must find during the public hearing that the owner has breached the conditions of the agreement. If the contract is cancelled, state law entitles the city to require a cancellation fee equal to 12 ½ percent of the property’s current fair market value as determined by the County Assessor.

Frequently asked questions

Q: What types of properties qualify for the Mills Act?
A: Properties listed as local historic landmarks, contributing resources in a historic district, or listed on the state or national historic registers qualify.

Q: How much can I save on my property taxes?
A: Savings vary by property and assessment. Most owners see a significant reduction but we recommend contact a tax professional or Sacramento County Assessor for specific information. Typically, the program is most beneficial for new property owners and for properties that were recently reassessed at a higher rate.

Q: Is my workplan only allowed to contain historic restoration projects?
A: Workplans can include any scope of work that demonstrates the owner’s intent to invest in the property. This can include things like new sprinklers, updating electrical systems, or maintenance items.

Q: What if I miss the application deadline?
A: Applications received after July 1st will be processed the following year.

Q: Can I sell my property after signing a Mills Act contract?
A: Yes, but the contract remains attached to the property and the new owner must honor its terms.

Q: What happens if I don’t maintain my historic property?
A: The city may cancel your contract after a public hearing, and you could be subject to penalties including a cancellation fee. However, the City does not use this program to enforce minimum maintenance requirements, which is instead handled by code enforcement staff.

Q: How often do I need to report and pay fees?
A: Every five years you must submit a workplan progress report and pay the inspection fee. City staff will contact you with instructions in advance of your report being due.

Q: Can I cancel the contract if I change my mind?
A: Yes, by giving advanced written notice. The contract stays in effect for the remaining term, usually about nine years, with no penalty.

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