O`Dea has not only an obligation to perform, but also a legal obligation to keep her house. Five years ago, she and her husband signed what is called a Mills Act agreement. The agreement gives the O`Deas a 30 per cent discount on their property tax bills. In return, they must maintain their home in excellent condition and meet the requirements for the preservation of the historic character of the property. Montes stated that it would not support the collection of royalties until after the completion of the entire designation procedure. Once a landowner has a historical name, he can apply for a Mills Act contract and it is certain that his investment in the process has been financially profitable. Once a Mills Act contract is signed, an applicant can pay his fees and the city pays for them, Montes said. Since only 10 percent of real estate fails in search of a historical name, the city shouldn`t lose a lot of money, she added. But heritage custodians hate the idea of charging such high fees in advance to apply for the Mills Act agreements. This will discourage candidates like the O`Deas, they said, who will not be ready or able to make the initial investment in the preservation of their real estate. The nomination period for the Mills Act runs from January 1 to March 31. For 2021 Mills Act applications, please email or email DSDMillsAct@sandiego.gov.
Please send your cheque for $471.00 to the city treasurer. Schwartz said that many people applying for Mills Act agreements get thousands of dollars in tax relief every year. Property tax savings for Mills Act real estate are estimated at between 25 and 75%, and the revenue tax is an important source of revenue for municipalities. If you own a property listed as historic by historical resources Board and you have registered a Mills Act agreement on your land, the benefits of the Mills Act are the property. In this way, the new owners “inherit” the benefits and responsibilities of the agreement.