Mills Act Pilot Program
The City of Beverly Hills' Mills Act Program is a self-directed, financial incentive program for owners of locally-designated historic properties.
A Mills Act Contract is a 10-year contract between the owner of a landmark property listed on the Local Register of Historic Properties and the City of Beverly Hills. The purpose of a Mills Act Contract is to provide property tax relief for an owner in return for the long-term maintenance and preservation of the property’s historic features and character.
In order for your property to be considered for a Mills Act contract under the current pilot program, it must be a designated City of Beverly Hills Landmark and satisfy the Mills Act Pilot Program requirements. If you are unsure if your property is a designated or eligible landmark please contact City staff.
- On October 18, 2011, the City Council adopted Resolution No. 11-R-12838 authorizing implementation of a two-year pilot program for the Mills Act within the City of Beverly Hills and establishing a contract and fiscal cap of this program, through December 31, 2013.
On March 4, 2014, the City Council authorized a three-year extension to the pilot program with amendments, through December 31, 2016. Amendments to the Pilot Mills Act Program approved in 2014 include:
- No longer limited only to single family dwellings or commercial properties constructed as a theater
- Eligible uses extended to include: single-family dwellings, multi-family dwellings, and commercial properties
- $10.0 M cap on the tax assessed value of participating properties, with provisions for an exemption to this cap for exceptional properties
- City Council Resolution - Mills Act Pilot Program Extension
Click on the following links for more Information:
- The California Mills Act, enacted in 1972, grants local governments the authority to establish, administer and implement Mills Act Historic Preservation Tax Abatement Programs (Mills Act programs).
- Cities and counties with Mills Act programs are able to enter into contracts with owners of qualified historic properties who actively participate in the restoration, rehabilitation, and maintenance of their historic properties while receiving property tax relief.
- Each local government establishes its own criteria for evaluating applications and determines how many contracts will be allowed.
- Mills Act participants may realize property tax savings of up to 50% each year depending on several variables.
- The County Assessor’s office re-assesses property taxes based on a capitalization of income formula rather than on market value.
- Contracts are automatically renewed each year and are transferred to new owners when the property is sold.
- Penalties may be imposed if a property is found in breach of contract. The City may then cancel the contract whereupon the County Auditor collects a cancellation fee of 12.5% of the current fair market value of the property as determined by the County Assessor.
- State codes related to the Mills Act include the California Government Code, Article 12, Sections 50280-50290 and the California Revenue and Taxation Code, Article 1.9, Sections 439-439.4.
Interested in preserving your property's historic and architectural value?
William Crouch, AIA AICP NCARB LEED (AP)
Urban Designer & Historic Preservation Program Manager
City of Beverly Hills
Associate Planner, Historic Preservation Program
City of Beverly Hills