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January 28, 2008
Is San Diego in Love with the Mills Act?
An annual tax break will be coming to those wealthy neighborhoods across San Diego, amounting to approximately,
4.7 million dollars. The Mills Act is a program that is responsible for offering incentives to home and
property owners that encourage them to maintain and preserve their homes or buildings, by cutting their
property tax, as much as, 70%. Currently, San Diego has more participating homes, more than any area in the United States, with over
eight hundred. Unfortunately, the city of San Diego is unable, at this time, to make sure all those participating are
holding up their end of the bargain. Some of these homes can go 10 years without being inspected.
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This is a county where almost 4.4 billion dollars was collected for property taxes in the year '07-'08. Those who support the
tax cuts insist that they are desperately needed in order to preserve these historic homes and buildings. Even though the
city has lost over 4 million dollars, owners note that it is a fraction of what they collect. They believe the extra money
the city receives, from increased home values (= increased taxes), from those homes surrounding a historic property, more than makes up the
difference.
The number of homes does seem to create great concern, even for former California senator, Jim Mills, who helped with the
law's creation. He says that it was not his intention for so many homes to participate, he meant it to
be for "significant buildings and houses" and had no idea there would be over eight hundred homes receiving tax breaks, almost
forty years later.
The rules for qualification are homes or buildings must have been built during, or previous to WWII, or have been previously owned
during a notable event, or by a notable person. Also, homes / structures can qualify, if it represents a certain time or architectural design and
lastly if it was built by a "master builder". Those who do pass qualifications, sign a contract which last ten years and are automatically renewed unless it is cancelled by
the city or home owner. During that time, owners agree to preserve their homes / buildings and if they decide to sell it within
the ten years, the new owners must agree to the preservation contract.
The law stated that participating owners were required to open their doors to the public, but that c
hanged in 1985, when it was no longer required. Since that time, participating homes and buildings increased by over 2500, throughout the
state of California, with San Diego being the king.
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