What is the Mills Act?

The Mills Act is property tax reduction for designated historic properties. The tax savings can be used to help maintain that historic property.

Why is it called the Mills Act?

The legislation is named for the author of the legislation -- historian, statesman, and writer Jim Mills. Senator Mills is well known for being an advocate of mass transportation, for creating our current San Diego Trolley system, and for his many years as chairman of the board of the San Diego Metropolitan Transit Development Board (MTDB). Although now retired from public life, Senator Mills has consistently been a strong supporter of historic preservation in our region.

Why would the Chula Vista City Council vote to bring the Mills Act here?

Because it's very smart. By giving back a percentage of tax money, it creates incentive to restore older properties. A Mills Act contract reduces the amount of property tax collected by the city, but the city doesn't miss very much money. That's because for every dollar of property tax collected, about 85 cents or so goes directly to the County of San Diego. It is the County Assessor's Office that calculates the tax savings for Mills Act contracts. And the County knows that restoring historic buildings is good for everybody's property values. The homeowner wins, Chula Vista wins, and the neighborhood wins.

Do other local cities have the Mills Act?

Yes. The Mills Act has been very successful in the cities of San Diego, Escondido, and La Mesa. Recently, the city of Coronado has adopted the legislation. Currntly, there are about approximately 200 buildings within San Diego County that are under Mills Act contract.

Will any old building qualify for the Mills Act?

No. In order to qualify, the structure must be a locally designated historic building. The Chula Vista historic sites listed elsewhere in this Web site are locally designated landmarks and, as such, could qualify for the Mills Act.

How do I get my home locally designated if it was not designated in the past?

The last survey of historic properties was done in the mid 1980s. The historic survey needs to be updated. Many buildings that were not listed on the survey done 15 years ago could qualify now. As a general rule, to qualify as historic, a building must be at least 50 years old and be a good example of a particular architectural style or be associated with a person or event of local historic importance. 

The Chula Vista City Council will be reviewing the previous historical survey and will be working with the Chula Vista Heritage Museum to create a process in which owners could nominate their buildings for local historic designation.

I would like to benefit from the Mills Act, but I've heard that historic 
designation would place restrictions on my building. Is this true?

Yes and no. Historic designation is a means of helping preserve your building for the future, so preserving your building must be one of your goals. In theory, we should all be stewards of our property and should seek to be true to the building's original architectural style. By seeking historic designation, you are acknowledging your role and responsibility in keeping this structure safe as a contributing member to Chula Vista historic neighborhoods. 

If your building is granted historic status, then this means you would not replace wood windows with aluminum ones, cover original wood with stucco or vinyl siding, or put an addition on the building that is visible from the sidewalk in front of your home. In fact, if any of these unsympathetic "improvements" were done to your building, and your building does qualify as historic, you could use your tax savings under the Mills Act to undo the damage done by previous owners.

By getting your building historically designated, you are helping preserve Chula Vista's architectural legacy and adding your name to the ranks of those who care about where we live.

If I apply for the Mills Act, what am I committing to doing?

The Mills Act is a 10-year, "endlessly renewable," legally binding contract with the City of Chula Vista. After your building is historically 
designated, you would fill out a Mills Act application and submit it to the city with a minor fee. When your Mills Act application is approved, you will be sent a contract to sign and have notarized. By signing this document, you are agreeing, in principle, that in return for the tax savings you are going to preserve your building. 

Your Mills Act contract, if you are in good standing and not in violation of the ordinance, is endless renewable: it will always have 10 more years on it, unless for some reason you wished to cancel the contract. (You won't want to cancel. See related question below.)

Can the City of Chula Vista cancel the contract on me? If so, would I have 
to pay back the tax savings?

No, a city cannot cancel a legal contract. The contract will be as legally binding on the City of Chula Vista as it will be on you. There will be no need to pay back the tax savings because of the City canceling a contract.

How much money can I expect to save with the Mills Act?

Tax savings can be big often up to 60 percent. However, there are some properties in the city of San Diego that are benefiting from a savings of almost 90 percent. That's a lot of savings! The County Assessor's Office determines the tax savings by applying a complex formula to the current amount of taxes being paid to determine the new amount. (It is no simple calculation. In future Mills Act workshops hosted by the Heritage Museum, a representative from the County will discuss how they figure the new tax.) 


When would I see the tax savings with the Mills Act?

The application cycle for Chula Vista has not yet been determined. In other cities, however, an owner would apply any time during the year, with usually an autumn cut-off date, in order for the tax savings to be reflected in the April tax bill.


Do I have to open my home to the public if I have a Mills Act contract?

No, you never have to open your home to the public. The historic homeowners who have offered to open their homes for the tour on May 12, 2001, are doing so to show their support for the Mills Act, to benefit the Chula Vista Heritage Museum, and to encourage other owners of older properties to designate their buildings.


Under a Mills Act contract, will I have to open my home for inspection by 
city officials?

Often there is language as part of the ordinance that would allow for an inspection by city officials, but an inspection would usually only be 
requested if the City suspected that an owner was violating the Mills Act contract. In other cities in California with the Mills Act, a yearly 
drive-by inspection is usually all that the Planning Department does to be sure that the building under contract is being cared for.


What happens if I sell my historic building before I have the Mills Act for 
10 years?

The new owner assumes the benefits of the Mills Act contract! Lucky for the new owner! This means that during less-than-robust economic times, your building with a Mills Act contract just got that much more desirable in comparison to other similar properties.

Can I ever cancel my Mills Act contract?

Why would you ever want to cancel? When you see what you save versus what you pay, you'll never want to give up the Mills Act. If for some reason you do want to cancel, you can give written notice that you want to cancel, and in 10 years your contract would be void. If you wanted to cancel sooner, you would have to repay your tax savings and possibly submit a fine. However, NO ONE IN THE STATE OF CALIFORNIA HAS YET TO CANCEL A MILLS ACT CONTRACT!