The Mills Act regarding San Diego Real Estate


​Description of the Mills Act real estate tax benefits for historical buildings. History and requirements of the rule as well as what it means for San Diego real estate owners.

Transcription:

Hey everyone, John Collins, San Diego Realtor. I wanted to talk to you a little bit today about the Mills Act. Specifically what it is, and what it means for San Diego real estate owners. Now, the Mills Act itself was a piece of legistlation that was passed back in the early seventies by the state of California and what it said was that local jurisdictions could make their own rules for tax breaks and incentives for owners of historical properties so they could take that money and reinvest it back into the home, and maintain it for posterity and for the benefit of the community.


San Diego passed its rules for the Mills Act, or based on the Mills Act, in 1995 and since then it's become one of the most active Mills Act areas in California. Last count, I think there were around three hundred properties taking advantage of that tax break. That tax brea is about 50%, so it is a very significant savings if you do go through and qualify those benefits.


Now, historical designation for your property does mean there are some restrictions on what you can do to that property going forward. Typically, as you would expect, you need to maintain the historical aspects that are of interest to people. So there are rules around that. There is a cost associated with it as well, typically around three thousand dollars, and that's for the historical designations and well as the fees that go along with with the application for the Mills Act. Obviously, compared to 50% savings that could be very worthwhile.


As far as the neighborhoods that have the most historical properties in them, in San Diego; it's the ones that go back to the early days of the city, of course. Either the maritime industry or the missions. So, Point Loma, Bankers Hill, MIssion Hills, and then down the east side of Balboa Park; North Park, South Park, and Golden Hill have quite a few historically significant properties. But, there are historical properties all over San Diego, so you may have one, regardless of the neighborhood you are in. I was in a property in Pacific Beach the other day that dated all the way back to 1905. It was a beautiful property, I loved seeing it. I hope this information is helpful. If you have any questions you can always reach out to me, whether it is in regards to the Mills Act or buying, selling, or investing in San Diego real estate. I look forward to having that conversation. I thank you for your time, and I hope you have a great day!

Scroll Down for some current listings in Historic Mission Hills / Hillcrest zip code of 92103.
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San Diego, CA 92103
$1,150,000
1009
sqft
1
Baths
2
Beds
Live in one of San Diego's finest neighborhoods!!! Mission Hills offers residents a small town feel while just minutes from Downtown SD.
Mission Hills (San Diego), CA 92103
$2,649,900
3358
sqft
4
Baths
5
Beds
Presenting the exquisitely updated classic Mission Hills craftsman-style estate with historical designation (huge potential tax savings)! Perched on an elevated lot along the iconic & highly coveted S...
San Diego, CA 92103
$449,000
775
sqft
1
Baths
1
Beds
You will love this beautiful top floor condo at The Point at Mission Hills! 1 bedroom, 1 bath, 775 sq ft, stainless appliances, granite counters, maple cabinets, in-unit laundry, covered balcony, new...
San Diego, CA 92103
$1,395,000
1281
sqft
2
Baths
2
Beds
Quintessential North Mission Hills single-story Craftsman home with Mills Act in place.
San Diego, CA 92103
$1,799,000
2032
sqft
3
Baths
3
Beds
Never before offered for sale! Amazing Presidio location! A rare opportunity to own a quiet and private view home full of charming updates.
San Diego, CA 92103
$1,185,000
1569
sqft
2
Baths
2
Beds
Imagine Balboa Park as your backyard.
San Diego, CA 92103
$2,700,000
0
sqft
0
Baths
0
Beds
First time on the market in a generation, possibly THE most unique investment property you'll see this year.
San Diego, CA 92103
$2,399,000
2295
sqft
3
Baths
3
Beds
MISSION HILLS Magic! Corner lot Spanish revival home, elegant while cute as a button.
John Collins

John Collins

DRE# 01948188
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