What Is The Mills Act?
The Mills Act is a state law allowing cities to enter into agreements with the owners of historic structures. Such agreements require a reduction of property taxes in exchange for the continued preservation of the property. Property taxes are recalculated using a formula in the Mills Act and Revenue and Taxation Code.
The Town Council has approved the use of Mills Act agreements with owners of designated historic properties. Based on this action, the Historic Preservation Advisory Commission is promoting awareness and use of the Mills Act as an incentive for the preservation of local historic buildings.
In Truckee, the Mills Act requires that historic property owners spend the property tax money that is saved through the Mills Act on preserving and/or restoring their property.
Who Is Eligible?
To qualify for the Mills Act in the Town of Truckee, a building must first be listed as a Category A, B or C historic resource in the Town of Truckee’s Historic Resources and Architectural Inventory.
How It Works
The Mills Act law enables the Town to enter into 10-year agreements with owners of historic properties. Under these agreements (“Mills Act agreements”) owners agree to maintain and if necessary rehabilitate their historic structures.
Mills Act agreements have a minimum term of 10 years and are automatically renewed annually for an additional year. Thus, unless the Town or the owner files a notice of non-renewal, a Mills Act agreement always has a term of 10 years.